1 out of 4 stocks in BSE 100 at record high; Maruti Suzuki leads way in auto segment

Even as the broader indices inch move towards new highs, one in every four stocks from the BSE 100 universe has climbed to record highs in the last one month, reports Yoosef KP in Mumbai. The Sensex is about 5.5% away from its all-time high of of 29,681.77 points that it touched in January 2015.

With Maruti Suzuki leading the way, all auto players in the BSE 100 universe excluding TataMotors scaled new highs in July. The company has been adding market share with its new models having becoming popular; the carmaker is expected to gain from the salary increases for government employees. Other consumer companies too are expected to benefit from the salary hikes as also a good monsoon, which should drive up incomes and demand in the hinterland. Hero MotoCorp, for example, has seen its stock soaring as has Bajaj Auto, even though the latter didn’t fare particularly well in the June quarter.

The Asian Paints stock has done well after the firm posted good numbers for the June quarter; the firm recorded an operating profit of 22.8% during the quarter on the back of lower input costs.

Strategists note that investors appear to have pruned their positions in IT sector stocks following a subdued set of numbers declared by Infosys and TCS. They pointed out that with the Street expecting a recovery in the economy, a few players from the core sector and a couple of bank stocks — oriented more towards retail assets rather than corporate assets — too have gained: HDFC Bank and Kotak Mahindra Bank, for instance hit new highs in July.

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