The auto sector index of the Bombay Stock Exchange zoomed by nearly 200 points to hit a new high in early trade on Monday, driven by reports of strong sales in September by players like Mahindra & Mahindra and Tata Motors.
Among the thirteen sectoral indices on the BSE, the auto index emerged as the top performer in opening trade today, jumping by 190.66 points to a lifetime high of 9,947.62.
The rally in the auto index, which comprises twelve companies, was led by Mahindra & Mahindra. M&M surged by as much as 4.12 per cent to Rs 742.95 and was the biggest gainer on the 30-share benchmark Sensex in early trade on the BSE.
On Friday, Mahindra & Mahindra had reported record sales of 35,177 units in September, a 23.71 per cent jump vis-a-vis the same period last year.
Tata Motors also witnessed a smart jump of 2.55 per cent to an early high of Rs 1,147.40, buoyed by impressive September sales and the auto major's announcement that it will raise Rs 2,300 crore via an institutional share sale.
The company had reported sales of 64,668 units in September, compared to 52,513 units in the same month of 2009. It has also launched an institutional share sale to raise over Rs 2,300 crore in order to reduce its debt.
Shares of the country's largest car-maker, Maruti Suzuki, also gained 1.11 per cent to Rs 1,499.10 in the morning session.
In addition, Bajaj Auto was riding high on the back of robust sales numbers and rallied 2.99 per cent to hit an all-time high of Rs 1,589.90 in early trade. The company today posted a 25.57 per cent jump in September sales to 3,52,769 units from 2,80,916 in the year-ago period.
Meanwhile, the broader Sensex was trading firm at 20,584.90, up 140 points from the previous close.