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Escorts jumps 6%, Tata Motors, Ashok Leyland up 2%; here’s why auto stocks rose in trade today

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Escorts jumps 6%, Tata Motors, Ashok Leyland up 2%; here’s why auto stocks rose in trade today

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Tata Motors shares closed 2.3 percent higher at Rs 457.30 on the National Stock Exchange (NSE). Bajaj Auto shares jumped more than a percent to Rs 3,804.15. Ashok Leyland shares surged 2 percent to close at Rs 123.45 while Hero MotoCorp’s stock rose 0.7 percent to settle at Rs 2,328.

Escorts jumps 6%, Tata Motors, Ashok Leyland up 2%; here’s why auto stocks rose in trade today
Shares of automobile companies rose on Tuesday with Escorts, Tube Investments, Bharat Forge, and Eicher Motors gaining up to 6.6 percent in an otherwise volatile market.
The sectoral index Nifty Auto jumped as much as 1.2 percent intraday with 13 out of 15 scrips in the pack in the green.
The rally comes on a day Federation of Automobile Dealers Associations (FADA) reported a 7 percent hike in retail auto sales in India on a year-on-year basis in FY22. However, domestic passenger vehicle retail sales in March declined by 4.87 percent to 2,71,358 units as compared to the same month last year.
"Passenger vehicles continue to see high demand and long waiting periods as semiconductor availability still remains a challenge, even though supplies slightly improved from previous month," FADA President Vinkesh Gulati said. He added that the Russia-Ukraine war and China lockdown will further dent supplies and hit vehicle deliveries.
Two-wheeler sales declined by 4.02 percent to 11,57,681 units last month, as compared to 12,06,191 units in the year-ago period. "The two-wheeler segment was already a non performer due to rural distress. It saw further dampening due to rise in vehicle ownership cost coupled with rising fuel cost," Gulati stated.
Commercial vehicle sales were up 14.91 percent to 77,938 units, as compared to 67,828 units in March last year. Three-wheeler sales were also up 26.61 percent to 48,284 units last month, as compared to 38,135 units in March 2021.
Following the development, Tata Motors shares closed 2.3 percent higher at Rs 457.30 on the National Stock Exchange (NSE). Bajaj Auto shares jumped more than a percent to Rs 3,804.15.
Ashok Leyland shares surged 2 percent to close at Rs 123.45 while Hero MotoCorp’s stock rose 0.7 percent to settle at Rs 2,328.
Commenting on auto sales, global brokerage JPMorgan said M&M outgrows peers across categories and remains its top picks along with Ashok Leyland. Ashok Leyland will benefit from CV recovery and market share uptick in M&HCVs, the brokerage said.
StockChange at close (%)
Escorts6.63
Tube Investments5.55
Bharat Forge2.55
Tata Motors2.36
Ashok Leyland2.02
Eicher Motors1.64
Sona BLW Precision Forging1.36
Bajaj Auto1.08
MRF0.85
Hero Motocorp0.7
TVS Motor0.58
Bosch0.26
M&M0.25
Maruti-0.45
Balkrishna Industries-0.8
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