Auto index hits new high on strong demand

Shares of automobile and auto ancillary companies are on a roll with the Bombay Stock Exchange (BSE) S&P BSE Auto index hits new high today on back of strong demand.

Motherson Sumi Systems, Bharat Forge, Maruti Suzuki India, Mahindra and Mahindra (M&M), Apollo Tyres, Tata Motors and Cummins India are trading higher in the range of 2-8% on the BSE.

S&P BSE Auto index, the second largest gainer from the sectoral indices, is up 2.5% at 15,626 points compared to 0.37% rise in S&P BSE Sensex at 1140 hours. The BSE auto index hits a new high of 15,633 during intra-day today.

In past one week, auto index has surged 3% against 0.55% rise in benchmark index, after the Government extended an excise duty concession by six months till December 31, 2014.

Maruti Suzuki India has rallied 5% to Rs 2,564, also its record high on BSE, after reporting a 33.5% year on year increase in its total sales for June at 1,12,773 units. The country's largest car-maker had sold 84,455 units in the same month last year.

Motherson Sumi Systems and Bharat Forge (up 8% each at Rs 349 and Rs 673 respectively) and Bajaj Auto (up 1.5% at Rs 2,347) are among auto index which hit their respective new high on the BSE.