At 12.05, Auto Major M&M was trading 8.5% higher. The stock touched an intraday high of Rs 534. At NSE 678k shares changed hands while on BSE, the volume was 80k shares.

May Futures contract for M&M was up by 8.6% at 524.

SBI Magnum Contra Fund holds 863k shares in M&M stock. Other major funds holding the stock include UTI Equity Fund, SBI Magnum Tax Gai and SBI Blue Chip Fund. SBI Magnum Contra has been rated among top 10 best performing funds in India in a recent Outlook Money survey.

M&M's company Tech Mahindra emerged as winning bidder in Satyam Computer Services auction. Tech Mahindra has difficult path ahead but market analysts are positive on the stock.

Other Gainers from Auto Sector include Maruti, Ashok Leyland and Tata Motors.