Bajaj Auto surges on reported forecast for motorcycle demand

May 21 2014, 16:08 IST
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Shares of Bajaj Auto Ltd gain 5.5 pct, heading towards their biggest single-day gain since Jan. 20, 2012. Reuters Shares of Bajaj Auto Ltd gain 5.5 pct, heading towards their biggest single-day gain since Jan. 20, 2012. Reuters
SummaryShares of Bajaj Auto Ltd gain 5.5 pct, heading towards their biggest single-day gain since Jan. 20, 2012.

Shares of Bajaj Auto Ltd gain 5.5 percent, heading towards their biggest single-day gain since Jan. 20, 2012, after the motorcycle maker's management issues a better-than-expected outlook in a conference call with analysts.

Management expects the domestic motorcycle industry to recover to 8 percent growth in FY15 with the stable (BJP) government," Credit Suisse wrote in a report on Wednesday after the call.

The projected growth would be much higher than in the previous two years, analysts say.

A Bajaj spokesman was not immediately reachable for comment.

Gains were also boosted as investors shed short positions, leading them to buy the futures contract: the motorcycle maker's May contract & lt; BAJAK4:NS> shed 30,000 shares in outstanding positions, sending it up 4.8 percent.

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