Sensex Climbs on Autos

For the second straight session Indian shares were up and they ended at their highest in more than a month. TATA (NYSE: TTM), one of India’s largest automakers, reported their highest ever monthly sales in February. It seems that easier requirements for low-cost loans and an expected price hike drove more customers to the dealership. Maruti Suzuki India, General Motors India and Hyundai India also reported their highest monthly sales since inception.
TATA has seen profits rise since the beginning of the year after acquiring Jaguar and Land Rover brands. Luxury car models selling through the global crisis is giving TATA high hopes . The company said its gross profit margin for the quarter was 11.74%.
The Indian government and finance minister Pranab Mukherjee adjusted taxes to put more money in the hands of consumers; they’ve also implemented changes to agricultural and social programs, which will hopefully further boost consumer spending.
The overall mood in Mumbai and New Delhi is positive. New orders in manufacturing and the increased concern of the government to enlarge the middle class have people enthusiastic and optimistic.