Powered by impressive monthly sales figures and hopes of strong corporate earnings, auto stocks on Monday rallied on the Bombay Stock Exchange with the sectoral index gaining 1.83 per cent over the last close.
Among top performers, automaker Mahindra & Mahindra, which reported a 19 per cent jump in sales last month, shot-up by 4.75 per cent to settle at Rs 743.85.
Country's largest carmaker Maruti Suzuki jumped 2.07 per cent to close at Rs 1,300.70. Maruti Suzuki India posted an increase of 28.20 per cent in total sales for March.
Led by sharp rise in these stocks, the BSE auto index emerged as the fourth best performer among sectoral indices rising by 171.51 points, or 1.83 per cent, to close at 9,527.37 points.
Meanwhile, the BSE key index Sensex climbed 281, or 1.45 per cent to close at three-month high of 19,701.73 points.
Brokers said apart from the encouraging sales number, expectations of strong fourth quarter earnings to be announced later this month also generated buying interest.
Hero Honda Motors, the largest motorcycle maker continued its winning streak for yet another session and ended 0.98 per cent higher at Rs 1,618.30 as company reported 24.41 per cent growth in its sales during March.
Another two-wheeler giant TVS Motor also participated in Monday's rally by gaining 0.32 per cent to Rs 61.95, as the company's monthly sales during the last monthly surged 27.27 per cent.
Tata Motors ended 0.92 per cent higher at Rs 1,254.30 after company's sales shot up 10.96 per cent during the month of March.