Tata Motors, M&M gain on March sales surge

Last Updated: Mon, Apr 02, 2012 07:27 hrs

Reuters Market Eye - Shares in Tata Motors and Mahindra & Mahindra gained after they reported a surge in monthly sales in March, reinforcing optimism about a sector that has rallied in the first quarter of calendar 2012.

Autos have been one of the winning sectors from January to March, gaining 24.1 percent, well above the 14.5 percent gain in the broader Nifty index.

Tata Motors' sales in March rose 20 percent from a year ago, while Mahindra's sales rose 25 percent in the same month.

Sales in March have been boosted by a surge in buying ahead of the unveiling of the 2012/13 federal budget, which as expected, raised duties on car purchases.

Tata shares were up 2.9 percent, while Mahindra shares were up 0.2 percent.

(Reporting by Manoj Dharra; Editing by Rafael Nam)

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