Auto Shares Rebound Despite FADA's Cautious Forecast Amid Uncertainty Over Iran Conflict
Auto Shares Rebound on Tuesday Amid Select Buying
Auto shares pared early losses to trade higher on Tuesday, as investors snapped up select shares at lower levels, despite caution flagged by dealers over the impact of the Middle East crisis. The initial decline was seen due to profit booking after dealers highlighted concerns that rising crude oil prices, triggered by the Middle East situation, could push up fuel costs and weigh on demand.
Major Laggards in Early Trade
| Company | Percentage Decline |
|---|---|
| UNO Minda | Up to 3% |
| Eicher Motors | Not specified |
| Maruti Suzuki India | Up to 0.72% |
| Bajaj Auto | Up to 0.89% |
UNO Minda declined as much as 3 percent to Rs 1,081.5 per share on the NSE, while Bajaj Auto and Maruti Suzuki India slipped 0.89 percent and 0.72 percent, respectively. Tata Motors Passenger Vehicles and Ashok Leyland also traded lower.
However, shares recovered in the latter half of the session, led by Mahindra & Mahindra after the company reported strong fourth-quarter earnings. Mahindra & Mahindra on Tuesday posted a 48.5 percent rise in consolidated profit after tax at Rs 5,259.91 crore for the quarter ended March 31, 2026, driven by its auto and farm segments.
The company had reported a consolidated PAT of Rs 3,541.85 crore in the year-ago period, it said in an exchange filing. Consolidated revenue from operations stood at Rs 54,891.55 crore in the fourth quarter, compared with Rs 42,585.67 crore in the corresponding period of the previous fiscal.
Meanwhile, total automobile retail sales in India rose 12.94 per cent year-on-year to a record 26,11,317 units in April, as against 23,12,221 units in the same month last year, FADA said. The industry benefited from improved affordability, a supportive interest rate environment, healthy rural demand following a strong rabi season, and an extended marriage period, the dealers' body said.
April Automobile Retail Sales
| Category | April 2026 | April 2025 | Percentage Change |
|---|---|---|---|
| Total Automobile Retail Sales | 26,11,317 | 23,12,221 | 12.94% |
| Passenger Vehicles | 4,07,355 | 3,63,028 | 12.21% |
| Two-Wheelers | 19,16,258 | 16,95,638 | 13.01% |
| Three-Wheelers | 1,06,908 | 99,741 | 7.19% |
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Investor Takeaway
Investors should be cautious of the potential impact of geopolitical tensions on the auto sector.
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