Buzzing auto stocks: Ashok Leyland touches 52-week high, Tata Motors gains 8 per cent

Shares of auto stocks continue to dazzle on Tuesday as well. BSE Auto index was up by 2.33 per cent. The index has jumped by around 11.84 per cent since the beginning of the month.

Ashok Leyland gained by more than 27 per cent in the last one month. The stock has been a buzzing stock with investors eyeing strong growth trend and significant expected returns. The stock has gained on expectations of a gradual recovery in the commercial vehicle segment with gains likely to sustain in near-term provided improved results for coming quarters and reduced debt levels.

Stock of Mahindra & Mahindra hit its 52-week high of Rs 709.80 per share on BSE after it announced that its Farm Equipment Sector will be manufacturing a new tractor series called the 'K2' at the company's tractor manufacturing facility located in Zaheerabad in Telangana. The company’s shares have surged by around 13.33 per cent since reporting healthy operational figures for Q2FY21.

Analysts remain positive about the growth trajectory of Tata Motors since the company reported of a healthy demand for a range of its vehicles during the festive season. Analysts believe that retail sales and bookings for Tata Motors have significantly increased during this festive season compared to last year’s.

The festive season has provided the much needed demand growth for the subdued auto sector.

Other companies in the auto sector also were in green such as Motherson Sumi Systems gaining by 6.17 per cent, Eicher Motors was up by 0.32 per cent, TVS Motor Company gained by 0.81 per cent, Balkrishna Industries increased by 2.07 per cent, Maruti Suzuki was up by 0.46 per cent, etc.