Mid- and small-cap auto and ancillary stocks charge ahead on new Sebi norms

Besides the so-called technical factor, analyst also attribute the current rally to an attractive valuation, prompting investors to buy these stocks

Investors flocked to mid-cap and small-cap auto and auto ancillary firms on Monday, setting off a rally in the stocks.

Among the mid- and small-cap firms part of the BSE Auto index, Ashok Leyland surged the most. Shares of the Hinduja flagship firm recorded a 9.8 per cent rise to close at Rs 74.9 apiece.

A sequential recovery in commercial vehicle sales has driven investor sentiment upward. Ashok Leyland, however, is yet to reach the previous high of over Rs 100 it had attained during the pre-Covid phase. TVS Motor also gained 2.7 per cent to close at Rs 456.9.

Most auto ancillary