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Trade in 2010-10-11

1. BAJAJ AUTO: Valuations factor in strong momentum; Limited probability of positive surprises; Peak margins, valuations; Neutral – Volume outlook positive, in line with estimates: Bajaj Auto’s (BJAUT IN; Mkt Cap USD10.2b, CMP Rs1,568, Neutral) volume growth outlook is positive with momentum in motorcycles and three wheelers continuing. The management’s FY11 volume guidance is positive,

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