The Indian stock market continues trading in the green with Sensex up 152.98 points or 0.32 percent at 48021.96, and the Nifty added 63.90 points or 0.46 percent at 14082.40.
The auto index gained a percent led by Ashok Leyland which jumped over 5 percent thereby hitting new 52-week high.
The Hinduja flagship firm reported a 14 percent increase in its total commercial vehicle sales at 12,762 units in December 2020. The company had sold a total of 11,168 units in December 2019, Ashok Leyland said in a regulatory filing.
Total vehicle sales in the domestic market stood at 11,857 units last month as compared to 10,378 units in the year-ago month, a growth of 14 percent, it added. Domestic medium and heavy commercial vehicle sales were at 6,175 units as against 6,369 units in December 2019, down 3 percent, the company said.
The other gainers included Eicher Motors which added 3 percent followed by Tata Motors and Mahindra & Mahindra.
Brokerage firm Sharekhan recommends buying Mahindra & Mahindra. The stock is attractively valued with P/E multiple of 17.2x and EV/EBITDA multiple of 9x its FY2023E estimates, and is at a discount to its long-term average multiples, it said.
ICICIdirect has maintained buy rating on M&M with an unchanged target price of Rs 870 valuing it using SOTP valuation methodology.
Eicher Motors gained after total Royal Enfield sales jumped 37 percent to 68,995 units in December 2020 as against 50,416 units in December 2019. Sequentially, total motorcycles sales rose 8.17 percent in December 2020 from 63,782 units sold in November 2020.
Exports soared 82 percent to 3,503 units in December 2020 as against 1,927 units in December 2019. Total CV sales jumped 31.8 percent in December 2020 from 3,710 units sold in November 2020.
Share price of Tata Motors gained 2 percent after the auto major reported a 21 percent increase in total vehicle sales in the domestic market to 53,430 units in December. The company had sold 44,254 units in the domestic market in the same month last year, Tata Motors said in a regulatory filing.
Over 300 stocks hit new 52-week high on NSE including names like Ashok Leyland, Bajaj Auto and Motherson Sumi Systems among others while the most active stocks included Ashok Leyland and Tata Motors.
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