The stock surged by 13.73 per cent to Rs 3,569.90, its 52-week high, during the day trade on the BSE. It finally ended up 5.69 per cent at Rs 3,317.35.
At the NSE, Wabco settled up 6.02 per cent at Rs 3,300.
As per media reports, India has made anti-lock braking system (ABS) compulsory on all new models of commercial vehicles staring April next.
"The key beneficiary of the same would be Wabco India that is the market share leader in the M&HCV space for braking systems," ICICI Securities said in a note.
ABS helps control vehicles during emergency braking at high speeds by unlocking the wheels and allowing traction control by electronic distribution of pressure to wheels.
Meanwhile, in the broader market, the Sensex ended at 25,413.78, up 313.86 points.