On December 30, Indian auto shares rose sharply, pushing the Nifty Auto index up more than 1% and ending a three‑day slide.
Why Auto Stocks Rose
Investors are optimistic that December vehicle sales will be strong. Better affordability from lower GST, new model launches, lower interest rates and easier financing are all helping demand.
December Sales Expectations
Analysts expect double‑digit year‑on‑year growth in sales across all vehicle categories. They also see export volumes rising in Asia, Africa and Latin America.
Industrial Production Boost
India’s industrial production jumped 6.7% in November, the highest in over two years. Manufacturing grew 8%, giving the auto sector a strong lift.
Top Gainers on the Auto Index
- Hero MotoCorp – up more than 2%
- Ashok Leyland – up over 2%
- Bajaj Auto – up over 2%
- Mahindra & Mahindra – up about 2%
- TVS Motor Company – up about 2%
- Maruti Suzuki – hit an all‑time high of ₹16,818 before closing 0.5% higher at ₹16,625
Stocks That Fell
- Eicher Motors (Royal Enfield) – down more than 1%
- Exide Industries – down more than 1%
- Tube Investments of India – down more than 1%
Bottom Line
Strong sales expectations and a rebound in industrial output are lifting auto shares. Keep an eye on how the December sales numbers turn out, as they will signal whether the current buying momentum can last.
Remember, this is just my perspective, not a prediction. Do your own research before making any investment decisions.