Tata Motors, Maruti Suzuki, Bajaj Auto shares give Nifty Auto a firm lift – what’s powering the rally
Maruti Suzuki shares jumped immediately after the earnings announcement, rising more than three per cent to Rs 8,681.3 apiece on BSE.
Auto stocks such as Tata Motors, Maruti Suzuki and Bajaj Auto were in high demand on Dalal Street on Tuesday, contributing to a more than one per cent rise in the Nifty Auto as well as the overall market. Auto and auto component stocks have a weightage of 5.3 per cent in the Nifty50 benchmark.
The stocks of Tata Motors, Maruti Suzuki and Bajaj Auto rose around 1-4 per cent in intraday trade.
Maruti Suzuki reported a more than two-fold jump in net profit to Rs 2,351 crore for the December quarter, on the back of almost 25 per cent growth in revenue to Rs 29,044 crore. Both topline and bottomline were far ahead of Zee Business research estimates.
Maruti Suzuki shares jumped immediately after the earnings announcement, rising more than three per cent to Rs 8,681.3 apiece on BSE.
Tata Motors was the top gainer in the Nifty50 basket, rising nearly four per cent to Rs 423.8 apiece on the bourse. The auto major is slated to report its financial results on Wednesday, January 25.
According to Zee Business research, the Tata Group auto company’s consolidated loss may narrow down to Rs 530 crore for the October-December period from a net loss of Rs 1,516 crore for the year-ago period.
Its revenue is estimated to rise 14.5 per cent to Rs 82,710 crore, according to Zee Business research.
Tata Motors' margin is estimated to improve by 130 basis points on a year-on-year basis to 10.7 per cent, according to Zee Business research.
Bajaj Auto shares gained more than one per cent to Rs 3,662.3 apiece at the strongest level of the day.
The company will also report its quarterly numbers on Wednesday.
According to Zee Business research, Bajaj Auto's revenue is estimated to remain unchanged on a year-on-year basis though its profit as well as margin are expected to expand.
Other stocks that contributed to the rally in Nifty Auto included Sona Comstar, Bosch, Motherson Sumi, Eicher Motor, Ashok Leyland, MRF and Hero MotoCorp.
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03:14 PM IST