Despite robust September sales fueled by festive demand and GST cuts, auto stocks came under selling pressure on October 3, with the Nifty Auto index slipping after a two-day winning run.
Auto dealers saw increased footfalls as buyers thronged dealerships in large numbers on September 22 to buy vehicles with lower price tags under the new GST regime
Abakkus founder backs discretionary names, pharma, chemicals and engineering over pricey consumer staples and autos
While the GST tax cut is expected to revive affordability and volumes at home, analysts warn that global headwinds, particularly from the US and Europe, could keep export oriented auto ancillary players under pressure
Auto stocks: Brokerages says the recently announced GST reforms will boost the sector.
Mutual funds raised allocations to autos for the second straight month in August, lifting sector weight to a 10-month high, aided by GST cuts and improving demand outlook. While tech made a modest comeback, private banks and healthcare saw allocations trimmed
Tax cuts likely to spur demand in cars, cement and durables, but stretched valuations keep fund managers selective
Auto shares climbed sharply on September 4 after the GST Council slashed taxes on small cars, SUVs, motorcycles, commercial vehicles, and tractors.
Shares of Mahindra & Mahindra were among those that led the losses on the index by falling 2%, thus extending their losses in four consecutive sessions to 6%
Hero MotoCorp, Eicher Motors, Bajaj Auto, and Maruti Suzuki were the top gainers on the index. Tata Motors and M&M kept the index in the red.
Bosch is planning to strengthen its competitive position in the mobility sector and industrial technology. It is actively adding new components, particularly those catering to EVs and advanced electronics.
Auto stocks: The sharp rally in the share prices pushed the Nifty Auto index up more than 1.5 percent, emerging as the top sectoral gainer on the market today.
Forays into new segments like sunroof, inorganic and organic strategies show the company’s confidence in the future.
Trump said he will impose an additional 10% tariff with no exceptions on any country aligning itself with what he called the 'Anti-American policies of BRICS'. India is a key member of BRICS.
Nifty Pharma index has extended gains for the 10th consecutive session. Nifty Auto index meanwhile extended gains for the third straight day.
Auto stocks: The sharp fall in the share prices pushed the Nifty Auto index down nearly 1 percent to hover around 23,466 in the afternoon.
Nifty Auto index saw a sharp rebound on June 18, rising 2 percent, after reports indicated India may shift rare-earth magnet imports to Australia.
Nifty Auto index is up over a percent to emerge as the top sectoral gainer, hopeful of export relief after Trump delays EU tariff deadline, and monsoon trend suggests a robust domestic rural demand ahead.
The surge in auto stocks comes amid a broader rally, with benchmark indices Sensex over 1,200 points and Nifty 50 closing above 25,000 at seven-month highs.
The rise in the share prices pushed the Nifty Auto index up nearly 2 percent to hover around 22,682 in the morning trade
India exports nearly $6.8 billion worth of automobiles and auto components to US, and the tariff is likely to impact the price competitiveness of these companies as well as their suppliers.
The high exposure of JLR makes US a key market for Tata Motors, and experts see a hit on revenue and profitability due to the imposition of tariffs on imported car and components. Trump called the trade imbalances as 'horrendous', which have devastated America's industrial base.
Tata Motors reported a muted sales growth in March, while M&M clocked strong monthly sales, and Maruti Suzuki's total sales grew marginally on year. Eicher Motors, the maker of Royal Enfield, recorded a sale of one lakh motorcycles in March, marking a 34 percent on-year rise.
Maharashtra's decision to increase motor tax levied on compressed natural gas (CNG) four wheelers by a percent has weighed on shares of car companies and Mahanagar Gas.
During his Budget speech, Deputy CM and Finance Minister Ajit Pawar said the tax hike on CNG vehicles is estimated to generate an additional Rs 150 crore in revenue for the state.