Indian stock markets opened on a higher note again today with BSE Sensex jumping 172.22 points at 39262.25, while NSE Nifty rose by 39.40 points at 11639.60. Auto stocks will be in focus today as scrappage policy for old vehicles is likely to be announced in the next few days. The Road Transport Ministry has prepared a draft note on scrappage policy for vehicles older than 15 years. As part of the draft note, the hike in registration fees for vehicles older than 15 years will increase to Rs 15,000, which is currently Rs 600. When it comes to re-registration for such vehicles, the fees will be hiked to Rs 40,000 from what currently is Rs 1,500. The drafted regulation will be presented for approval during the next Union Cabinet meeting.

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Amit Shah, Technical Research Analyst, Indiabulls Ventures said, ''Our contra call on the Nifty materialized and it achieved our target zone of 11,500. The undertone continues to remain bullish however, Nifty may consolidate near 11,700-11,800 mark for few sessions going ahead. Mid and small caps are likely to catch in a big way going ahead. 11,400 zone is the near term support and traders should look to position on the long side. Support: 11,400-11,200 & Resistance: 11,700-11,800.''

CLSA: India Strategy

According to Zee Business research team, the CLSA's India strategy report has set a new target for Nifty 50 at 13,000 levels in the coming 12 months, while the 50 share NSE index was trading at 11,600 levels during early trade on Monday. The report has further claimed that the upgraded Profit to Earning ratios (PE Ratio) of the companies are already discounted and this will largely impact FMCG shares in the coming few months. However, as far as the banking sector is concerned the banks will

CITI: Auto Sector update

The August volumes of the auto companies have remained weak and sales of commercial vehicles and two-wheelers are also expected to remain on the lower side in the coming months. Here are the revised targets of auto stocks.

1. Maruti Suzuki: Rs 7,400
2. Tata Motors: Rs 570 (Rs 580)
3. M&M: Rs 570 (Rs 580)
4. Eicher Motors: Rs 22,000 (Rs 22,100)

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5. Hero Motocorp: Rs 3,200 (Rs 3,250)
6. TVS Motors: Rs 360
7. Bajaj Auto: Rs 2,100 (Rs 2,250)
8. Ashok Leyland: Rs 55 (Rs 65)

On Monday, riding over the wave of optimism triggered by the government's move to slash corporate tax rates for domestic companies, the domestic stock market soared almost 3 per cent.