Auto index up 1% in subdued market; Eicher, Maruti Suzuki hit new highs

In the past one week, the Nifty Auto index has outperformed the market by surging 5.4 per cent, as against 1.7 per cent gain in the Nifty 50.

Share price movement of automobile stocks

 

Shares of automobile stocks continued their upward movement, with the Nifty Auto index hitting a new high at 29,095.15, surging 1 per cent on the National Stock Exchange (NSE) in an otherwise subdued market. In comparison, the Nifty 50 was up 0.10 per cent at 10:50 AM.

 

Maruti Suzuki India (₹17,325) and Eicher Motors (₹7,499) were up 2 per cent each, hitting new highs in Monday’s intra-day trade. Exide Industries, Uno Minda, Bajaj Auto, TVS Motor Company, Hero MotoCorp and Mahindra & Mahindra (M&M) from the index were up in the range of 1 per cent to 2 per cent.

 

In the past one week, the Nifty Auto index has outperformed the market by surging 5.4 per cent, as against 1.7 per cent gain on the Nifty 50. Further, in the past three months, auto index has rallied 8.9 per cent, as compared to 6 per cent rise in the benchmark index.  READ STOCK MARKET UPDATES TODAY LIVE

Why auto and auto parts stocks outperformed in last 3 months?

 

In December 2025, demand remained resilient even after the festive season, as reflected in robust wholesale volumes across segments, supported by GST rationalisation. The passenger vehicles (PVs), commercial vehicles (CVs), two-wheelers (2Ws), and tractors recorded robust year-on-year (YoY) growth of 19 per cent, 26 per cent, 35 per cent, and 39 per cent, respectively, underscoring broad-based momentum across the auto sector.

 

Looking ahead, continued positive consumer sentiment, driven by GST rationalisation, upcoming marriage season (in February 2026), and recent formation of the 8th Pay Commission is expected to support demand momentum, particularly in the entry-level domestic PVs and 2Ws. CV demand is likely to continue the momentum, led by higher government of India capex and improved infrastructure activity, analysts at JM Financial Institutional Equities said.

 

Beating our estimates, 2Ws volume grew by higher double-digit in December 2025, owing to robust retails, low YoY base and inventory buildup partly due to some OEMs having low inventory post festivities. Tractor volume also saw higher double-digit YoY growth (higher than ARe) on strong retails, government support measures and positive outlook for the upcoming Rabi season, analysts at Anand Rathi Share and Stock Broker said.  ALSO READ | Nifty IT index declines 2.5% as sector braces for subdued Q3 growth 

“With higher-twenties growth, CVs volume also exceeded our estimate, aided by replacement demand on GST cut, higher freight/mining activities and pick-up in infra capex post monsoon. PV volume saw mid-twenties growth (in-line with our estimate) on the back of strong demand,” the brokerage firm said. Analysts maintain a positive stance on the auto sector, led by GST-rate reform benefits, benign interest rates and higher disposable income.

 

Analysts at ICICI Securities said the healthy demand momentum (both retail and wholesale) was bolstered by GST cut-led post-festive buoyancy. The 2Ws segment continued to report strong double-digit YoY growth aided by strong domestic demand and reinforced by export growth. PVs wholesales also grew in double digits led by recovery in small-car demand, even as SUVs continued to lend strong support to the overall volumes. CV segment continues to see recovery (delivered strong double-digit YoY growth), 15 per cent ahead of the brokerage firm’s estimates, led by healthy traction across both MHCVs and LCVs.  ========================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.