Tata Motors, M&M Gain On March Sales Surge

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 per cent, well above the 14.5 per cent gain in the broader Nifty index.

Tata Motors' sales in March rose 20 per cent from a year ago, while Mahindra's sales rose 25 per cent 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 per cent, while Mahindra shares were up 0.2 per cent.

(Reuters)