Shares of automobiles companies were in focus with the S&P BSE Auto (24,293) and Nifty Auto index (10,919) hitting their respective record highs on the bourses on Wednesday in intra-day trade after strong rally in automobiles and auto related companies.
Mahindra & Mahindra (M&M), Ashok Leyland, Exide Industries, Cummins India, Bharat Forge and Maruti Suzuki India, from the auto index, were up in the range of 1% to 6%, as compared to Sensex and Nifty 50 index, which trading flat at 11:17 am.
The S&P BSE Auto and Nifty Auto index were up 1% each, up for the seven straight trading sessions. Since May 23, auto indices have outperformed the market by surging almost 6% against 2% rise in the benchmark indices. Ashok Leyland, M&M, Bharat Forge, Maruti Suzuki India and Tata Motors have gained between 7% and 11% during the period.
M&M rallied 6% to Rs 1,449 on BSE in intra-day today, after the company said the outlook for 2017-18 (FY18) is much more robust with a favourable domestic and global backdrop.
Expectation of good monsoons, higher rural incomes and, a government thrust in agricultural and rural sectors is likely to push tractor demand up in Q1FY18 by driving positive sentiment in the larger rural economy, it added.
On the global front too, demand backdrop is expected to be favourable with most forecasts pegging global output and trade higher in 2017 and 2018 as compared to the recent past, the company said.
Maruti Suzuki India hit a new high of Rs 7,238, up 1.3% on BSE in intra-day trade. Since April 27, the stock rallied almost 13% after reported a good set of numbers for the quarter ended March 2017. On comparison, the Sensex was up 4% during the period.
Analysts at HDFC Securities remain positive on the Maruti Suzuki growth story on the back of strong volume growth, led by consistent volume uptick of Ciaz, Brezza and Baleno, and success of Ignis, increasing ASP, led by an expanding portfolio in the premium segment, fresh capacity addition from the Gujarat…