Auto Shares See New High, Nifty Auto Index Shoot Up

The month of August’16 saw the shares of automobile companies, which include ancillaries and tyre firms, scale new heights with the Nifty Auto index and S&P Bombay Stock Exchange (BSE) Auto index due to strong sales growth.

At 02:35 pm, Nifty Auto index and S&P BSE Auto index recorded an up of 1 percent each against the 0.48 percent increase in the benchmark indices. On Friday in the intra-day trade, Nifty Auto index rose to a new peak of 10,062, while S&P BSE Auto index secured a record high of 22,326.

Hero MotoCorp, Maruti Suzuki India and Escorts were in the list of record high achievers, whereas Tata Motors, Exide Industries and JK Tyre and Industries gained their individual 52-week highs on the sensex.

August witnessed the passenger vehicle segment, which includes cars, utility vehicles and vans, post a robust double-digit domestic sales development of 16 percent.

The sales of the auto makers have been on a roll due to the upcoming festive season, where automobile dealers are seen piling up their stock at the backdrop of festive demand. Some other positive indications have been favorable monsoon in the country, an increase in the pay scale of the government employees owing to the implementation of 7th Pay Commissions recommendations and revoking of the ban imposed on 2L (2000 cc) diesel vehicles in the Delhi-NCR (National Capital Region) area.

Among the tyre stocks JK Tyre & Industries, Ceat Limited, MRF and Apollo Tyres were up between 3-6 percent due to depletion in the natural rubber cost, which is a key raw material.

Author: Ankit verma

My need for speed began at a very early age and I realised this as soon as I got my first bicycle at the age of 8. When all the other kids would break downhill I would pedal harder just to go faster and enjoy the thrill. Adding to my interest for speed, I grew engrossed in the working mechanics of two wheelers thanks to my father as he is a hydraulic mechanic and would take me along with him on his repair sessions. Eventually I became familiar with the tools and basic technical concepts of two wheelers.Super sport and sport tourers are more of my liking and the sparks to these flames were ignited the first time I experienced the maddening power of a Yamaha YZF R1. I was just 14 years old at the time and got to ride as a pillion with an older acquaintance. This one short ride influenced my every decision in terms of the bikes I want to own. As of today I’m 26 years old and a proud owner of a Yamaha Fz15 version 2.0 and a Kawasaki Ninja 650 2014 model having clocked a decent 30k Kms only while touring, waiting to clock 1000s more as riding makes me feel whole again after enduring the dismal routines of life. Read more