Shares of automobiles companies including auto ancillaries and tyre firms are on a roll with the Nifty Auto index and S&P BSE Auto index hitting their respective new highs on the bourses amid robust sales in August.
At 02:35 pm, Nifty Auto index and S&P BSE Auto index were up 1% each as compared to 0.48% rise in the benchmark indices.
Nifty Auto index hit a new high of 10,062 and S&P BSE Auto index touch a record high of 22,326 in intra-day trade on Friday.
Hero MotoCorp, Maruti Suzuki India and Escorts hit record highs, while Exide Industries, JK Tyre & Industries and Tata Motors touched their respective 52-week highs on the bourses.
The passenger vehicle (cars, utility vehicles and vans) segment has posted strong double-digit domestic sales growth of over 16% in August. Sales have been strong, with dealers stocking up for the festive demand. Others positive triggers have been a good monsoon, higher pay for government employees and lifting of the ban on 2,000 cc diesel vehicles in the Delhi-National Capital Region (NCR). LINK.
JK Tyre & Industries, Ceat, Apollo Tyres and MRF from the tyre stocks were up between 3%-6% on weakness in prices of natural rubber prices, a key raw material. LINK.