Bajaj Auto extends rally after Egypt lifts import ban

Bajaj Auto is trading higher by 3% to Rs 2,017, extending its previous day’s 5% rally, on reports that Egypt government has lifted the ban on imports of two-wheelers and three-wheelers into the country which was in effect since February 2014. This move is expected to benefit Bajaj Auto as it is one of the biggest exporters of two-wheelers and three-wheelers to Egypt. The company intends to resume its shipments to Egypt from June with deliveries of 5,500 and 3,500 units of three wheelers and two-wheelers respectively. Angel Broking believes that the lifting of the ban is positive for the company as it will boost overall exports growth and enable the company to offset its underperformance in the domestic markets. The stock opened at Rs 2,011 and touched a high of Rs 2,029 on NSE. A combined around 74,000 shares changed hands on the counter in early morning deals on the NSE and BSE.