Eicher Motors Rallies, Nifty Auto Outperform Benchmark On Heels Of Strong Business Update
Nifty Auto was up over 2% in comparison to Nifty 50 which was trading at 0.84%.
Eicher Motors Ltd. lead gains among auto stocks as Nifty Auto outperformed the Nifty 50 index on Thursday. The auto sector gauge was up over 2% in comparison to Nifty 50 which was trading at 0.84% higher. The positive sentiment in the sector is driven by strong monthly sales figures reported on Wednesday.
Royal Enfield maker Eicher was the top performer with stock surging as much as 7.02% at Rs 5,228 as it hit life high on Thursday following robust business update. The company posted a strong performance in its December sales, with total sales reaching 79,466 units, surpassing the estimated 74,500 units.
The company's total sales grew by 25% compared to the previous year's 63,387 units. Notably, its international business saw a significant jump of 90%, with sales reaching 11,575 units, compared to 6,096 units in the same period last year. On the domestic front, Eicher Motors saw a 19% increase, with sales rising to 67,891 units from 57,291 units in December 2023.
Ashok Leyland was the second top performer in auto stocks, surging 4.60% during the day before pairing gains to trade at 3.62%. The sharp uptick in the stock price came following the release of the company's robust December 2024 sales data.
Ashok Leyland's December sales surpassed expectations, with overall sales increasing by 5%. The company's sales of medium and heavy commercial vehicles saw a notable 8% year-on-year growth.
Shares of Maruti Suzuki was second in terms of top gainers in the sector. the stock rose as much as 3.27% before it pared gains to trade at 3.14% on Thursday. The stock gained on the heels company reporting 30% spike in India sales in its third quarter update on Wednesday. The stock has risen over 13% in past one year, as per data available on Bloomberg.
Shares of Mahindra and Mahindra and TVS Motors also were in the green trading above 2%
