Tata Motors, Bajaj Auto: Near-term headwinds may keep auto shares volatile

Going ahead, analysts at Motilal Oswal Financial Services see easing semiconductor supplies supporting PV wholesales, but the two-wheeler segment will take time to recover

Shares of auto and auto-ancillary companies entered fast-lane on Monday after auto-makers posted in-line December sales figures over the weekend.

Shares of Tube Investments of India, for instance, surged over 8 per cent intra-day while those of Eicher Motors, Ashok Leyland, Tata Motors, Bharat Forge, Maruti Suzuki India, and Bajaj Auto gained between 1 and 5 per cent. Exide Industries, Bosch, Hero MotoCorp, and MRF, too, gained up to 0.9 per cent.

The sector, especially two-wheeler makers, however, may not be entirely out of the woods yet and could have a bumpy road ahead, caution analysts, as increasing price hikes,