Major quarterly earnings have led to a bullish stance in the auto sector. Nifty Auto has gained by more than 1% so far on Tuesday. The index has been floating between an intraday high and low of 11,824.90 and 11,691.35. The broader sentiment in the sector was positive led by broad-based buying with heavyweights outshining.
M&M and Bosch are in focus ahead of their Q2 results, while MRF has already announced its financial performance for the quarter earlier today.
At around 2.15 pm, Nifty Auto was trading at 11,725.70 higher by 79.95 points or 0.69%. On the index, 12 scrips advanced while 3 scrips declined.
TVS Motor and Ashok Leyland hit a new 52-week high of Rs813.95 per piece and Rs152.70 per piece respectively. TVS Motor was the top gainer soaring by 3.4% followed by Ashok Leyland climbing by 2.5%.
TVS Motor stock has been in focus after fundraising buzz for EV business circulates in the market. The company clarified the news in the regulatory filing saying that there is no such negotiation taking place as of now.
Tata Motors also contributed heavily to the index by advancing more than 2.2%. Ahead of their Q2, Bosch and M&M soared by 1.8% and 1.6% respectively.
Tata Motors has signed a five-year Memorandum of Understanding (MoU) with Equitas SFB, one of the country’s largest small finance banks, to bring a set of attractive financial solutions to its customers.
Bharat Forge and Hero MotoCorp jumped over 1% each. Eicher Motor and Balkrishna were higher by 0.6% each. Bajaj Auto zoomed 0.4%.
Amara Raja Batteries and Exide traded flat but in the green.
On the contrary, MRF was the top laggard nosediving by more than 1.8% after announcing its Q2. The tyre maker reported a 53.99% decline in consolidated net profit to Rs189.06cr in Q2FY22 versus a profit of Rs410.92cr a year ago same period. However, the company's revenue from operations rose to Rs4,907.81cr in Q2 of this fiscal versus Rs4,244.43cr in Q2 of the last year.
Further, on the index, Tube Investments and Maruti Suzuki plummeted by 1.7% and 1.4% respectively.
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