Nifty Auto extends gain for second straight day: M&M, TVS and Bajaj top gainers
Upstox
2 min read • Updated: February 16, 2024, 3:08 PM
Summary
Mahindra & Mahindra gained up to 5% to touch a fresh 52-week high of ₹1,864.65 apiece on NSE after the announcement of a component supply agreement with Volkswagen for its electric platform INGLO.
The Nifty Auto Index gained as much as 2.66% on Friday extending the rally for a second straight day. The top gainers of Nifty Auto were Mahindra and Mahindra, Bajaj Auto, TVS Motors, Maruti Suzuki and Tata Motors.
The auto index traded 2.24% higher at 20,421 in intraday trade at 1:32 PM, amid a strong buying trend in most auto stocks. The bullish run in Nifty Auto was led by Mahindra & Mahindra which gained up to 5%. The auto giant’s stocks touched a fresh 52-week high of ₹1,864.65 apiece on NSE after the announcement of a component supply agreement with Volkswagen for its electric platform INGLO.
The company, in a filing to the stock exchanges, stated that it will be the first external partner to use Volkswagen's unified cell concept, which is the core element of the German auto maker's battery strategy.
India two-wheeler maker TVS' shares also recorded a new 52-week high, gaining over 4% as it crossed the milestone of ₹1 lakh crore market capitalisation. The Chennai-headquartered company has also announced the acquisition of a 28.57% stake in the Indian Foundation for Quality Management (IFQM) for ₹2.5 crore.
Bajaj Auto shares also continued their bullish run, gaining 4% on Friday to touch a fresh 52-week high of ₹8,455.45 per piece. The strong sentiment for Bajaj Auto shares for the past few weeks has been led by the company's strong performance in the quarter ending in December 2023.
The company, in its recently released Q3 results, reported a 37% YoY jump spike in net profit. From ₹1,491 crore in Q3FY23, the company's profit has climbed up to ₹2,042 crore in Q3FY24. Its revenue from operations increased 30.1% to ₹12,114 crore against ₹9,315 crore in the corresponding period of the last financial year. Shares of Bajaj Auto have gained nearly 10% since the start of February.
Maruti Suzuki India Limited also gained 3% touch a fresh 52-week high of ₹11,480 per piece. Riding on the demand for auto stocks, Tata Motors shares gained nearly 3% to touch a day high of ₹948.8 apiece.
Shares of Bajaj Auto were trading 3.44% higher at ₹8,400.1 apiece on NSE at 1:46 PM while TVS Motors was up 2.72% at ₹2,150 apiece. M&M shares traded 3.57% higher at ₹1,826.6 apiece while Tata Motors stock was up 2.21% at ₹940.85 and Maruti Suzuki traded at ₹11,413.65 apiece, up 2.92%.