The News International Team
11:30 am Buzzing: Shares of Bajaj Auto rose 2 percent intraday after it bagged an order for 1.25 lakh units of Discover-125M motorcycles from Sri Lankan government.
However, analysts are not very enthused about the stock. Macquarie maintains underperform rating with a 12-month target price of Rs 1,850 per share on worries that headwinds due to rising competition in motorcycles.
Morgan Stanley also maintains underweight as it feels the auto major’s current export run-rate will slow down and gaining share in domestic market will be tough for it. The brokerage also feels that valuations are pricing in the best-case scenario.
Goldman Sachs reiterates sell rating. It cautions that weakness in Discover portfolio may give opportunity to TVS and exports also may be under pressure.
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The market is holding firm with support by FMCG and Auto. The Sensex is up 71.19 points at 27443.03 and the Nifty is up 21.95 points at 8247.15. About 1241 shares have advanced, 953 shares declined, and 100 shares are unchanged.
GAIL, NTPC, BHEL, Coal India and HUL are top gainers in the Sensex. Among the losers are Infosys, Hindalco, Reliance, ICICI Bank and TCS.
Japanese stocks briefly hit a two-week high, led by oil-related shares on rebounding crude prices and as Showa Shell Sekiyu surged over 25 percent on a media report of an impending takeover bid.
Oil-related shares led the rally, with the oil and coal products companies subindex jumping 7.7 percent to become the best performing sector on the main board. US crude futures rose to near USD 57.50 a barrel in early Asian trades on Monday, extending a rise helped by profit-taking on short positions.