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BSE Auto Index Hits New High

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The BSE auto index rose for a sixth straight session to a new all-time high, on expectations sales will improve after an interest rate cut is seen bringing down the cost of loans.

Production has also normalised at India's biggest car maker Maruti Suzuki after recent labour unrest, which is also contributing to the gains in the sub-index.

"With production restored at Maruti, and with interest rates going down, car makers are expected to post 14-15 per cent sales growth i n FY13 over FY12"said Yaresh Kothari, sector analyst at Angel Broking.

"Maruti, Tata Motors are expected to be the main beneficiaries of RBI's cut" Kothari added.

Tata Motors rose 2.5 per cent, while Maruti Suzuki advanced 2.1 per cent.

The BSE's auto index has risen over 30 per cent in 2012, compared to a 12.5 per cent rise in the Sensex.


(Reuters)


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business auto tata motors news 9 loans maruti sales bse auto index