October 10, 2018 / 8:25 AM / 6 months ago

BUZZ-Indian 2-wheeler stocks climb after IRDA gives choice of insurance cover term

** Shares of two-wheeler makers TVS Motor Co and Hero MotorCorp climb 3.5 pct and 8.7 pct respectively

** The Nifty Auto index rises as much as 2.7 pct ** Noting that insurers were offering only long-term compulsory personal accident (CPA) policy for new cars and two-wheelers, Insurance Regulatory and Development Authority of India (IRDA) clarified that the owner-driver should have the choice to opt for a one-year CPA cover or long-term CPA cover

** In Sept, IRDA had made long-term motor third-party policy compulsory for new two-wheelers and passenger vehicles

** The increase in average selling price of vehicles because of change in insurance regulations in Sept could be lower by 3,500 rupees now, says Aditya Jhawar, an analyst with Investec Capital Services (India)

** Hero and TVS were the most vulnerable due to increase in average selling price, so the IRDA clarification could be of some respite to the companies, Jhawar adds

** TVS shares mark their sharpest intraday gain since July 2017

** More than 1 mln Hero shares trade, over 2 times their 30-day moving avg

** Up to last close, Hero stock had fallen about 23.6 pct this year, while TVS fell 35.8 pct

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