In the financial year 2022-23 (FY23), the BSE Auto index has outperformed the market by surging 26 per cent
The strong outperformance in auto sector is mainly due to pick up in pace of monsoons, cut in excise duty on fuels, and decline in global crude prices
Analysts at Emkay Global Financial Services retain their positive view on the auto sector, underpinned by expectations of a cyclical upturn in the next three years.
Passenger vehicle OEMs' attempt to catch up to the demand was impacted by production cuts, while demand for two-wheelers and PVs remain weak. Find out if you should chase the rally in auto stocks
Its stock price has risen 13.4% this month, against 2.1% fall in BSE Auto index
Cummins India, Ashok Leyland, Motherson Sumi, Bajaj Auto, Balkrishna Industries, Exide Industries and Amara Raja Batteries from the auto index were up between 3 per cent and 5 per cent on the BSE
Mahindra & Mahindra and Motherson Sumi Systems have rallied over 200 per cent from March lows.
In May, the S&P BSE Auto index gained 5.6 per cent as compared to 3.8 per cent decline in the S&P BSE Sensex.
So far in 2019, the stock has tumbled 11.3 per cent as against a 17 per cent fall in the BSE Auto Index.
With no major direct measure to revive demand growth for the sector being announced in the Union Budget for the financial year 2019-20, stocks of the auto-makers skid to new lows
Nifty Auto (up 4.02%) and the S&P BSE Auto (up 4.2%) indices were up more than 4%, as compared to 2% rise in the benchmark indices at 02:38 PM.
The S&P BSE Auto index hit its lowest level since 27 December 2016, has fallen 20% since September 2018, as compared to 11% decline in the S&P BSE Sensex.
At 01:59 PM; the S&P BSE Auto index (26,369) and Nifty Auto index (11,821) were up 2% each, against 0.4% rise in the benchmark indices.
M&M, Ashok Leyland, Exide Ind, Bharat Forge and Maruti Suzuki were up in the range of 1% to 6%