Hero MotoCorp, Eicher Motors among key Nifty gainers as markets scale new highs. Two wheeler sales remain in fast lane. | Mint
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Business News/ Markets / Stock Markets/  Hero MotoCorp, Eicher Motors among key Nifty gainers as markets scale new highs. Two wheeler sales remain in fast lane.
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Hero MotoCorp, Eicher Motors among key Nifty gainers as markets scale new highs. Two wheeler sales remain in fast lane.

Stock Market Today- Hero MotoCorp, Eicher Motors were amongst top Nifty gainers and Bajaj Auto saw gains post strong November volume numbers, on a day when Nifty scaled all time highs. Commercial vehicles and Passenger Vehicle sales remained a mixed bag.

Two wheeler sales in Fast lane during NovemberPremium
Two wheeler sales in Fast lane during November

Share prices of two-wheeler manufacturers as Hero MotoCorp, Bajaj Auto, Eicher Motors (RE) shined after strong November month sales. Hero MotoCorp, Eicher Motors with gains of close to 2% stood amongst key Nifty gainers while Bajaj Auto with gains of close to 1% was also not much behind on a day when Nifty with gains of more than 1.5% scaled new highs.

Domestic wholesales grew double-digit across OEMs in November with volumes up 50-77% YoY for TVS and Bajaj, and up 14-25% YoY for Eicher Motors (Royal Enfield), Honda and Hero. Based on volumes reported by OEMs (original Equipment manufacturers) , analysts at Jefferies India Pvt Ltd estimate that domestic two-wheeler (2W) wholesales rose 31% year-on-year in November (9%, Year to date in FY24). Registrations in the month also grew 19% YoY, partly boosted by the later timing of the festive season this year, as per Jefferies. The combined September -November registrations were up a healthy 8% YoY (up 7% YTD-FY24).

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Two-wheeler registrations growth of 30% y-o-y and 50% sequentially with Hero's volume growing at 80% on a sequential basis indicating a positive momentum in the entry-level segment and a possible rural recovery, said analysts at Antique stock Broking.

As the two-wheeler the domestic sales impressed, however, export sales remained soft and declined a slight 2% year on year, and 5% month on month. Also Share of Electric Vehicles in two wheelers fell 100 basis point month on month to 4.1% in November as per Jefferies data

While two-wheeler sales were in fast lane the Passenger Vehicles (PV) sales growth and Commercial Vehicle (CV) sales growth was a mixed bag.

Passenger vehicles sales though grew but overall numbers for leading manufacturers as Maruti Suzuki India Ltd are likely to have been impacted by lower entry levels sales.

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Jefferies analysts estimate that passenger vehicle (PV) wholesales rose a modest 3% YoY in November (8% year to date in FY24: In November, domestic wholesales grew a strong 32% YoY for Mahindra & Mahindra but were up just 1-3% YoY for Maruti Suzuki and Hyundai India and were flat YoY for Tata Motors, said analysts at Jefferies. Not surprising Share price of M&M gained more than 2% om Monday while Tata Motors saw only slight gains and Maruti stood amongst losers.

The Commercial Vehicle (CV) sales volume for Tata Motors also were down 4% year-on-year during November. However medium and Heavy commercial vehicles demand was good though weakness was contributed by light commercial vehicles (LCV).

Analysts at Antique Stock Broking said that they expect the LCV segment to have bottomed out and see it improving gradually hereon

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

 

 

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ABOUT THE AUTHOR
Ujjval Jauhari
Ujjval Jauhari is a deputy editor at Mint, with over a decade of experience in newspapers and digital news platforms. He is skilled in storytelling, reporting, analysing and writing about stocks, investment ideas, markets, corporates and more. He is based in New Delhi.
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Published: 04 Dec 2023, 12:02 PM IST
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