Auto stocks gain on expectation of strong Q4 results


Bangalore: Higher advance tax payment by most auto firms in the fourth and final installment of 15 March 2010 has triggered expectations of strong Q4 results from auto firms. Maruti Udyog, the country's largest car manufacturer, has forked out an advance tax of 250 crore in Q4 March 2010, much higher than 36.60 crore in Q4 March 2009. The BSE Auto index was up 1.70 percent to 7,620.17 and was the best performer among the sectoral indices on the BSE. It outperformed the Sensex, which was up 0.56 percent at 17,656.69 points. TVS Motor Company (up 1.22 percent to 78.70), Tata Motors (up 1.76 percent to 738), Maruti Suzuki India (up 1.86 percent to 1397.60), Mahindra and Mahindra (up 2.01 percent to 1075.75) and Bajaj Auto (up 5.40 percent to 1981.10) edged higher. Tata Motors, which did not pay any advance tax in the fourth installment of 2008-09, has paid 115 crore in the 15 March installment this year. Mahindra and Mahindra has paid 236 crore in advance tax in Q4 this year compared to nil advance tax payment in Q4 March 2009.