Nifty Auto index at over 2-year high on hopes of strong Q3 earnings growth

Nifty Auto index has jumped 8 per cent on a year-to-date basis in 2021

Shares of automobile and related companies were in demand in Monday's session with Nifty Auto index hitting an over two-year high, up more than 2 per cent, on expectation of double-digit earnings growth in the October-December quarter (Q3FY21), aided by robust volumes.

At 02:20 pm, Nifty Auto index was up 2.14 per cent at 9,950 as compared to a 0.79-per cent rise in the Nifty50 index. The auto index hit an intra-day high of 9,970, its highest level since September 27, 2018.

Thus far in the month of January 2021, the Nifty Auto index has outperformed the market by surging