M&M To TVS Motors: Auto Stocks See Sharp Rise
The market capitalisation of Mahindra and Mahindra crossed Rs 2 lakh crore for the first time ever.
Shares of auto companies were trading higher on Monday.
The Nifty Auto was trading 0.84% higher as compared with a 0.29% decline in the benchmark NSE Nifty 50 as of 3:30 p.m.
The market capitalisation of Mahindra and Mahindra Ltd. crossed Rs 2 lakh crore for the first time ever.
M&M's stock rose as much as 4.3% to hit an all-time high of Rs 1,670 apiece. It pared gains to trade 2.26% higher at Rs 1,641.45 apiece as compared with a decline in the Nifty as of 3:30 p.m.
The stock has gained 30.40% on a year-to-date basis. The total traded volume so far in the day stood at 4.3 times its 30-day average. The relative strength index was at 66.54, implying that the stock may be overbought.
Thirty-eight out of the 43 analysts tracking M&M maintain a 'buy' rating on the stock, four recommend 'hold,' and one suggests 'sell,' according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 3.5%.
M&M's shares increased 4.56% during the past two trading sessions, while Bajaj Auto Ltd.'s shares rose 6.84%. Tata Motors Ltd.'s stock increased by 2.60%, while Hero Motocorp Ltd. shares rose by 3.86%.
