Auto stocks remain under pressure ahead of the May auto sales announcement on June 1. The sales numbers are expected to be weak given the lockdowns in various parts of the country to curb the spread of coronavirus.
India has been grappling with a highly contagious variant of coronavirus amid second wave where the number of daily new Covid cases peaked around 4 lakh in early May. The number of cases have been falling since and are now hovering around 2 lakh per day.
As compared to the numbers in May 2019, May 2021 volumes are expected to witness a double-digit decline across segments. As volumes are not comparable YoY due to the low base last year, Emkay has weighed them against May’19 numbers.