Auto stocks under pressure as ahead of May sales numbers

Last year in May, the Modi government had announced a nationa-wide lockdown to tackle the first wave of coronavirus.

At the time of writing this copy, Nifty auto index was down 0.5 percent dragged by the M&M, Tata Motors, Amara Raja Batteries, Hero MotoCorp and TVS Motor, while Bosch and Motherson Sumi rose 1 percent each.

In comparison, Nifty hit fresh record high of 15,535.85 intraday.

The Sensex was up 353.69 points or 0.69% at 51,776.57, and the Nifty was up 96.90 points or 0.63% at 15,532.60.

According to Emkay, Tractors/PVs should see a lower decline in comparison with 2Ws/ CVs and expects a swift recovery in volumes from Q2FY22 due to easing of lockdowns and pent-up demand.

Agricultural field activities have not witnessed any obstruction/ problems due to the second wave. However, despite being considered as an essential category, Tractor volumes should be subdued on account of the severe impact of the pandemic in rural areas, it added.

Emkay's top picks among OEMs are Tata Motors, Ashok Leyland, Maruti Suzuki and Eicher Motors, while in ancillaries, top picks are Bharat Forge and Apollo Tyres.