Nifty Auto Slumps 3% as Crude Oil Surpasses $100, M&M, Maruti, Eicher Stocks Among Top Losers

Market Report: Auto Stocks Plunge Amid Crude Oil Price Surge

Key Takeaways

• The Nifty Auto index plummeted 2.8% on Thursday morning, making it the worst performing sectoral index.
• The Sensex fell 0.7% to 76,300, while the Nifty dropped to 23,700.
• Market breadth remained weak, with 2,481 shares declining against 1,049 advances on the NSE.

Sectoral Performance

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The Nifty Auto index was hit hard by the surge in crude oil prices, which rose above $100 per barrel. The index fell 2.8%, with Mahindra & Mahindra shares leading the decline, down 3.45%. Other auto stocks, including Eicher Motors, Tata Motors Passenger Vehicles, Maruti Suzuki, and Bajaj Auto, also saw significant declines.

Market Impact

The surge in crude oil prices has raised concerns about higher fuel costs and input costs for automobile companies. The market is also watching for potential disruptions in gas and CNG supply chains, which could influence fuel availability and pricing dynamics.

Broader Market Performance

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The broader market remained under pressure, with the Nifty Consumer Durables index declining 1.9% and the Nifty FMCG index falling 1.5%. However, energy-related stocks provided some support, with the Nifty Energy index rising 1% and the Nifty Oil & Gas index gaining 0.7%.

Key Statistics

• Brent crude: hovering near $100 per barrel
• Sensex: down 0.7% to 76,300
• Nifty: fell to 23,700
• India VIX: rose more than 4%