Bajaj Auto proved the biggest gainer in the 30-share Sensex around midway trading on Tuesday.

By 12:25 IST, the stock of the two- and three-wheeler wheeler major climbed 3.28 per cent to Rs 511 following huge buying interest in the stock ahead of the company's third quarter results, scheduled tomorrow (15 January 2003).

Bajaj Auto recorded volumes of over 1.17 lakh shares on BSE by that time. Earlier, just as trading commenced on Tuesday, Bajaj Auto had shot up 19 per cent to Rs 588 even as only one trade of 5,000 shares took place on the counter on BSE.

Market talk has it that the deal's price was actually a result of a punching error. Others held that it was an inter transfer scheme deal or internal management deal.

For Q3 ended 31 December 2002, a capitalmarket.com poll of eight analysts predicts for Bajaj Auto a net profit rise of 22.8-29.2 per cent to Rs 132.8 to Rs 139.7 crore, on net sales of Rs 1,114.5-1,143.4 crore, up 13.2-16 per cent.

Dealers attribute the rise on the counter to a solid result expected in the December 2002 quarter as well as on hopes that the company's future prospects appear bright. BAL is believed to be on the lookout for collaborations with firms in Indonesia for assembling its bikes like Caliber, Boxer and Pulsar there.

The company plans to generate 15-20 per cent of its business from the overseas market by 2005. It is also keenly following various African markets for the second phase of its overseas thrust.

Earlier on 1 January 2002, Bajaj Auto Ltd unveiled its December 2002 vehicle sales figures, which were disappointing.

For the month, BAL registered a 10.6 per cent rise in motorcycle sales to 68,998 units. However, it recorded a marginal 2 per cent increase in overall sales to 1,13,580 units.

On a month-on-month basis, Bajaj Auto reported a 10.39 per cent fall in motorcycle sales from 77,000 units in November 2002. Overall sales dropped by 11 per cent, from 1.27 lakh units in November 2002.

BAL continues to be a market leader in the entry level and performance segment in respect of bikes, with a greater product and marketing focus being brought in the executive segment - which is represented by the Caliber and Croma. A new 100 cc bike BYK (code named CBM) is slated for launch soon.

This product is expected to attract a whole new set of young and first-time buyers of two-wheelers. The 125 cc World Bike, which is being jointly developed with Kawasaki, will be launched during the fourth quarter of the current fiscal.

Recently, the company launched a bike called Boxer AR with a reinforced frame and stronger shock absorbers, targeted at the semi-urban and rural markets.

Meanwhile, the Pulsar continues to dominate the performance and power segment of the motorcycle market. Within a short span of time, Pulsar has achieved a sale of around 15,000 units per month. With the Pulsar now going national, a significant increase in sales is expected.

For the second quarter ended 30 September 2002, BAL recorded a 8.2 per cent fall in net profit to Rs 131.98 crore (Rs 143.70 crore) on a 12 per cent rise in sales to Rs 1,183.26 crore (Rs 1,057.12 crore.