More pain ahead for the auto sector? Here's what top brokerages say

The Nifty Auto index has plunged 41.7 per cent since February 3, 2020 as compared to 29.5 per cent fall in the Nifty50 index

The outbreak of the novel coronavirus (COVID-19) and the 21-day national lockdown announced to stem its spread have brought the auto space nearly to a halt. The automakers who were already struggling with a slowing economy -- the GDP growth slowed to nearly 7-year low of 4.7 per cent in Q3FY20 -- and transition to BSVI emission norms have now been hit by a Black Swan event the extent of whose impact is still undefined.

According to an estimate, the country’s automobile sales were down by an average 64 per cent in March. The bleak scenario is reflected in the automakers'