Nifty Auto index gains over 3% on Tata Motors-TPG deal boost

The Nifty Auto index gained 3.4 per cent on the National Stock Exchange (NSE) on Wednesday thanks to the investment deal in Tata Motors’ EV arm, which triggered a 20 per cent rally in the company’s shares.

Tata Motors holds approximately 12 per cent weight in the Nifty Auto index, and trails Maruti Suzuki and Mahindra & Mahindra.

The investment’s rub-off effect, coupled with demand recovery hopes ahead of the festive season, lifted other stocks as well. Shares of Ashok Leyland and M&M gained 5.6 per cent and 5.2 per cent, respectively, while TVS Motors, Bharat Forge, and Hero MotoCorp added up to 1 per cent.

However, Maruti Suzuki, which is a close competitor of Tata Motors in the EV space, declined 2.6 per cent on the NSE.