The shares of automobile companies gained about 2% on Monday on hopes of strong monthly sales figures. Monthly automobile sales figures will be released on Tuesday. Maruti Suzuki India, Tata Motors and Ashok Leyland were added to the MSCI India index.
The shares of Maruti Suzuki India were up 1.42% at Rs 4,645 on the BSE, while the top gainer of the benchmark, Bajaj Auto was trading at Rs 2,493.95, up 1.84%.
Tata Motors was up 1.86% at Rs 425.30 and Mahindra and Mahindra was trading at Rs 1,360, up 0.88%. Hero MotoCorp was at Rs 2,714.70, up by 0.39%.
Also read: Car sales zoom on festive season in October; Festival season brings in cheer; car sales rise 22% in October
Also read: Hero MotoCorp stocks gain nearly 1% on bumper sales in festive season
Among others, TVS Motors was trading at Rs 308.45, up 0.98%, Ashok Leyland was up 1.38% to trade at Rs 98.85, and Eicher Motors was at Rs 16,746.35, up by 1.08%.
Also read: MSCI raises India weightage, adds five companies to index
“The auto stocks are mainly up on expectations of a very good sales data tomorrow following the month of Diwali. Further, inclusion of Maruti Suzuki and Tata Motors in the MSCI index gave an impetus to the sector,” CNI Research head Kishore Ostwal said.
Analysts also attributed the spurt in auto stocks to hopes of passage of the Goods and Service Tax (GST) bill in Parliament during the ongoing Winter Session.