The Nifty Auto index was the top performer among NSE indices on Tuesday. Gains were broad-based across auto manufacturers and ancillary companies. Stock-specific developments also aided sentiment, such as a price hike announced recently by Tata Motors.
Selling was broad-based across major automobile and auto-component stocks on Friday. JPMorgan said geopolitical tensions and rising commodity prices are creating dual risks for the Indian auto sector -- cost inflation as well as potential production disruptions.
The Nifty Auto index ended 3.2 percent lower, the steepest fall among sectoral indices, as rising energy costs and supply-chain concerns weighed on stocks. High crude oil prices can add to fuel cost pressures for customers, while shortage of gas could disrupt component production.
Auto stocks also remained under pressure, with all 15 constituents of the Nifty Auto index trading lower.
Maruti Suzuki share extended its losing streak to a seventh consecutive session and has declined about 11 percent so far.
Auto stocks: The recent fall in the auto stocks reflects near-term profit booking and demand concerns, rather than a structural breakdown of the sector, an analyst said.
Auto stocks: Mahindra & Mahindra's sales of utility vehicles grew 23% YoY to 50,946 in the domestic market, while that of commercial vehicles rose 34% YoY to 24,786 in the month of December.
Auto stocks: Nuvama expects double-digit year-on-year growth in auto sales volumes across categories for December.
Auto stocks: Auto stocks have been losing value for the fourth consecutive session as they are the main victims of sustained pressure following demand worries and broader market risks, an analyst said.
Auto stocks: The index closed as the top losing sector on the market today, snapping a two-session gaining streak.
Nomura maintained a ‘buy’ rating on M&M with a price target of Rs 4,355, a 16 percent upside from the current levels.
Nifty Auto index had rallied more than 4 percent to 25,127.20 on August 18, 2025, after the GST cut announcement on August 15. From that level to Thursday’s record peak of 27,832.60, the index has gained 2,705.4 points or 10.76 percent.
Auto shares had rallied in recent weeks after cuts in GST with analysts expecting higher sales volumes and better margins.
India's trade deal with the European Union is also seen as a positive, especially for auto ancillary companies
Auto stocks: Brokerages says the recently announced GST reforms will boost the sector.
Vietnamese automaker VinFast Auto has announced the rollout of its VF6 compact SUV in India, priced from around Rs 16 lakh.
Auto stocks: Tata Motors, Mahindra & Mahindra (M&M) and other automakers announced that they will pass on GST 2.0 benefits to customers across various segments.
The sharp drop in the share prices pushed the sectoral indices, as well as the overall market, down.
Nifty Auto index declined amid caution ahead of India-US trade deal, with all its 15 constituents trading in the red, extending the index’s decline for the third consecutive session.
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.
Earlier this month, he said that the Indian government has "offered us a deal where basically they are willing to literally charge us no tariff". The possibility of a trade deal between US and India had earlier boosted the free falling auto stocks.
Auto stocks rose on Monday on expectations of steady demand and improving margins.
The rise in the share prices pushed the Nifty Auto index up nearly 2 percent to hover around 22,682 in the morning trade