D-Street Buzz: Nifty Auto ends 4% higher led by Maruti, Tata Motors, Hero MotoCorp; Bajaj Auto jumps 6%

The Indian stock market ended in the red after profit booking on May 11.

Sensex was down 81.48 points or 0.26% at 31561.22, while Nifty was down 12.30 points or 0.13% at 9239.20. About 1084 shares have advanced, 1280 shares declined, and 186 shares are unchanged.

Among the sectors, the auto index jumped 4 percent led by Maruti Suzuki, Tata Motors, Bajaj Auto and Hero MotoCorp which jumped 6 percent each.

After being shut for more than 40 days, two-wheeler, car and commercial vehicle showrooms are finally beginning to open in areas that were lesser impacted by the COVID-19 pandemic.

Hero MotoCorp on May 10 said it has resumed operations across 1,500 touch-points, including authorised dealerships, across the country. Around 10,000 units of motorcycles and scooters have already been sold since the reopening of these customer touch-points, Hero MotoCorp said in a statement.

Maruti Suzuki and Tata Motors were among the most active stocks on NSE in terms of value with 31,76,498 shares and 15,25,92,033 shares traded respectively at 15:30 hours.

Tata Motors has been a steady performer in the last 1 month with the stock gaining over 27 percent.

According to broking house, Sharekhan, Eicher Motors and Maruti Suzuki are its top largecap picks. It prefers companies that have a strong balance sheet and cash position and are leaders in their segments such as Hero MotoCorp and Exide Industries.

Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors recommends buying Tata Motors around Rs 78 with target at Rs 92. Daily chart of the stock reveals that demand is increasing and supply is diminishing as stock is taking support from line of the parity showing a rebound from its lower levels, he said.