Automakers stocks sprint up post May sales; M&M, Ashok Leyland zoom 6%

The Nifty auto index hiked by 3.1 per cent at 24,159 levels in intraday deals on Monday. This came after the automakers reported their total sales for the month of May recently. The surge in auto stocks also came after the exit polls predicted a thumping majority for the BJP led NDA in Lok Sabha polls. 

Shares of Mahindra and Mahindra (M&M) zoomed 5.9 per cent, hitting its 52-week high at Rs 2,654 per share on the BSE in today’s intraday trade. This came after M&M reported a 16.7 per cent increase in total sales volumes for the month of May, reaching 71,682 units compared to 61,415 units year-on-year.

M&M's passenger vehicle sales surged by 31 per cent to 43,218 units, while tractor sales saw a 9 per cent growth to 37,109 units and tractor exports soared by 85 per cent to 1,872 units.

Further, shares of Ashok Leyland also soared by 5.8 per cent also reaching its 52-week high of Rs 237 a piece on the BSE. The commercial vehicle maker on Sunday reported a 12 per cent increase in total wholesales at 14,682 units in May. In the year-ago period, the company posted total wholesales of 13,134 units.

Moreover, Bajaj Auto advanced 3.9 per cent to hit a 52 week high of Rs 9,444 after the company reported a marginal increase in total auto sales to 3,55,323 units in May 2024 as against 3,55,148 units in May 2023. While the company's domestic sales declined 1 per cent to 2,25,087 units, exports rose by 3 per cent to 1,30,236 units in May 2024 over May 2023.

Other automakers and auto ancillaries like Bharat Forge, Exide Industries and Tata Motors also shot up in the range of 2-5 per cent each on intraday levels. 

At 01:39 PM; the Nifty auto index was trading 2.72 per cent higher at 24,057 levels. By comparison the NSE Nifty50 index was up 3.12 per cent at 23,231 levels.