The Hindu Business Line : Bajaj Auto gains on rival's woes?

BAJAJ Auto is flying on the bourses on dealer views that troubles at rival Honda Motorcycles and Scooters India factory in Gurgaon will lead to better sales for the company this quarter. The counter also took refuge in the view that despite the monsoons in Pune, production in Bajaj Auto has not been affected, but for some vendor issues, and that production loss would be made up by overtime work.

The stock, which is a part of Sensex and Nifty, touched its 52-week high of Rs 1,472 on Tuesday before closing marginally lower at Rs 1,466.90.

Analysts are optimistic about the company's prospects in the motorcycle market though several predict flat growth in the scooter segment.

Recover on demand hopes

THE steel sector is losing its sheen as several large players announced drop in prices. With SAIL and Essar Steel announcing price cuts, dealers say that there are concerns about cooling off of demand.

While several steel stocks weakened during intra-day trade, Assocham's estimate that demand could pick up in the third quarter of the year helped perk up some counters.

The industry association expects steel prices to rise from third quarter this fiscal, predicting a recovery in the US economy, demand from Middle Eastern countries and domestic demand for steel.

SAIL gained Rs. 0.30 on Tuesday and closed at Rs 52.90. Essar Steel counter remained flat closing at the same level as Monday's close at Rs. 50.20.

Betting on volume growth

Hindustan Lever seems to be back in favour among investors as analysts predict higher volume growth in the rural sector with the monsoons looking strong.

Though Maharashtra has been adversely affected by excessive rains, demand in the rest of the country is expected to show a robust growth, according to analysts. The stock touched its 52-week high of Rs 175.50, before profit booking dragged it down. Dealers predict spiky movement in the stock as investors who have been locked in for long periods seek exit points.

The stock ended trade today at a loss of Rs 2.80 at Rs 171.25.

Veena Venugopal

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