Maruti, Bajaj Auto gain up to 12% in August. Time to exit auto stocks?

The recent up move, analysts say, was on the hopes of a possible cut in GST rates, which in turn fuelled a relief rally in the counters

At a time when the auto companies in India are grappling with a steep drop in sales due to weak consumer demand, with several top automakers and component manufacturers cutting production and laying off employees, their performance at the bourses for the last month presents a totally different picture.

Shares of Maruti Suzuki India (MSIL), country's biggest carmaker, gained an impressive 12 per cent and was the top Nifty performer during this period. Bajaj Auto and Hero MotoCorp followed, rising 11 per cent and 9 per cent, respectively. In comparison, the benchmark Nifty index shed around a per cent while