Auto shares trade firm in a weak market; Hero MotoCorp hits 52-week high

Analysts at Emkay Global believe that the recent recovery volumes will manifest into a powerful cyclical rally across segments for automobile companies

Shares of automobiles and related companies were trading higher in an otherwise weak market on Thursday on expectation of improvement in demand going forward, especially during the forthcoming festive season.

Hero MotoCorp, Ashok Leyland, Bajaj Auto, TVS Motor Company, Eicher Motors, Balkrishna Industries and Cummins India from the auto index were up in the range of 1 per cent to 4 per cent on the BSE. At 12:14 pm, the S&P BSE Auto index was up 0.5 per cent, as compared to 0.69 per cent decline in the S&P BSE Sensex.

“The months of August and September 2020