Auto Stocks Post Significant Gains, Nifty Auto Index Up 2% Following Yesterday's Rebound

Market Update: Auto Stocks Recover for Second Straight Session

Market Performance

On Tuesday, the Nifty Auto index rose approximately 2 percent in morning trade, marking its second consecutive session of gains. The sector led the NSE indices, with the broader market also firming up. At 10:24 am, the Nifty Auto index stood at 25,096, a 2 percent increase.

Recent Performance

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The rebound comes after the index fell 15.7 percent over 10 sessions from February 26 to March 13. Despite the recovery over the past two sessions, the index remains under pressure, down 6.25 percent over the past week, 10.9 percent in one month, and approximately 11 percent so far this year.

Stock Performance

Gains were broad-based across auto manufacturers and ancillary companies. Notable gainers include:

• Mahindra & Mahindra, up 2.9 percent
• Maruti Suzuki, up 2 percent
• Exide Industries, up 2.3 percent
• Ashok Leyland, up 1.6 percent
• Motherson, up 1.7 percent
• Bharat Forge, up 1.7 percent
• Eicher Motors, up 1.6 percent
• TVS Motor, up 1.6 percent
• Bajaj Auto, up 1.6 percent
• Hero MotoCorp, up 1.6 percent

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Market Trends

The strength in auto stocks came alongside a firm broader market, with the Sensex up 480 points and the Nifty rising 155 points. Market breadth remained strong, with advancing shares outpacing declines. The India VIX declined over 7 percent, indicating easing volatility and supporting risk appetite for cyclical sectors such as automobiles.

Stock-Specific Developments

Shares of Tata Motors' commercial vehicle business rose after the company announced a price increase of up to 1.5 percent across its commercial vehicle range from April 1, aimed at offsetting rising commodity costs. This move is part of a broader trend across the sector, with luxury carmakers Mercedes-Benz India and Audi announcing price hikes of around 2 percent, citing higher input costs and currency fluctuations. Hyundai Motor India has already implemented price increases, while Maruti Suzuki is evaluating a similar move.