Nifty Auto Surges Nearly 3%, Auto Stocks Zoom On Crude Oil Price Fall
Automobile stocks rallied sharply on Thursday, with the Nifty Auto index climbing 2.9%, or 761 points, to emerge as the top-performing sectoral index on the National Stock Exchange (NSE). The rally was supported by falling global crude oil prices and expectations of possible changes to US trade tariffs following the midterm elections. The auto index outperformed the benchmark Nifty 50, which…
The National Stock Exchange (NSE) witnessed a significant surge in automobile stocks on Thursday, with the Nifty Auto index surging by 2.9%, or 761 points, to become the top-performing sectoral index. This marked a notable outperformance over the benchmark Nifty 50, which gained 1.7% in morning trade. The rally was driven by falling global crude oil prices and expectations of potential changes to US trade tariffs following the midterm elections.
Ashok Leyland led the gains, surging 9% to Rs168, while Maruti Suzuki climbed 4.7% to Rs12,556. Tata Motors Passenger Vehicles (TMPV) increased 4.5% to Rs291, and Mahindra & Mahindra rose 3.4% to Rs3,063. The top gainers from passenger vehicle manufacturers included Hyundai Motor India, which gained 3.3% to Rs2,132, and Samvardhana Motherson International, which advanced 3.1% to Rs165.
Eicher Motors and TVS Motor Company also climbed 2.5% each to Rs7,610 and Rs4,440, respectively. The rally in automobile stocks was fueled by lower oil prices, which are anticipated to ease inflation and manufacturing costs, potentially boosting demand for automobiles. As investors shifted towards traditional industries following a dip in technology stocks, Japanese automakers Toyota Motor and Honda Motor gained approximately 5% each.
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