Auto stocks were buzzing in trade with the Nifty Auto index gaining 1% against a marginal 0.4% rise on the benchmark Nifty50 index after two auto majors Maruti Suzuki and Bajaj Auto reported robust sales in August.
Country’s biggest car maker Maruti Suzuki reported a strong double digit growth of 26% in domestic passenger vehicle sales for August as dealerships prepare for festive demand that begins later this month. Reacting to this, the stock added over 1% to Rs 7810 on the BSE.
Maruti’s growth will also ensure a double digit growth in industry’s sales for the month.
Maruti, which now commands a 50% share in domestic market, sold 151,270 units to dealers last month against 119,906 units in August last month.
Meanwhile, Bajaj Auto gained 3% to Rs 2887 after the total sales of the auto major jumped 3% to 335,031 units in August 2017 compared to 325,347 units reported in the same month of last year. Total sales included domestic sales of 200,659 units and exports of 134,372 units in August 2017.