Auto stocks rally; M&M surges 5%, TVS Motor, Bajaj Auto gain 3%

The last four months of 2020 include various auspicious occasions such as Navratri, Dussehra, Diwali, etc, hence, consumer's discretionary purchases rise in such months

Shares of automobiles companies were in focus at the bourses on Wednesday, with the Nifty Auto index, the top gainer among sectoral indices, rising 2 per cent on the National Stock Exchange (NSE) on expectation of higher demand in festival season.

Among individual stocks, Mahindra & Mahindra (M&M) surged as high as 5 per cent, while TVS Motor Company, Bajaj Auto and Tata Motors up 3 per cent each. Ashok Leyland, Hero MotoCorp and Eicher Motors also gained in the range of 1 per cent to 2 per cent on the NSE.

At 12:36 pm, Nifty Auto index