Stocks

Bajaj Auto hits 7-week high

BL Internet Desk Sept 7 | Updated on September 07, 2018 Published on September 07, 2018

Shares of Bajaj Auto today hit 7-week high as the company plans to expand its three-wheeler capacity. The stock jumped as much as 3.3 per cent to Rs 2,874, its highest in seven weeks.

Bajaj Auto plans to produce more three-wheelers after the Road Transport and Highways Minister, Nitin Gadkari, said auto-rickshaws running on alternative fuels will no longer need permits to ply. Bajaj Auto, which has an 86 per cent share in the three-wheeler market, intends to produce 10 lakh commercial vehicles every year that include three-wheelers and quadricycles, up from 8.4 lakh units currently.

Bajaj Auto will be the biggest beneficiary from abolition of permit requirement as it commands 86 per cent market share in alternate fuel 3W segment, Abhishek Jain, analyst at HDFC Securities, says in a note.

Bajaj Auto stock was the top percentage gainer on Nifty 50 index, which is down 0.14 per cent as of 0430 GMT. As of last close, the stock was down 16.51 per cent this year.

(With inputs from Reuters)

Published on September 07, 2018
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