Nifty Auto index soars 3%; Hero MotoCorp, M&M, Ashok Leyland rally up to 4%

Despite prevailing global uncertainties, Indian automakers continued to post robust dispatch volumes in April 2026

Nifty Auto index movement

 

Shares of automobiles and ancillaries companies were in a fast lane on Thursday, with the Nifty Auto index rising nearly 3 per cent to 27,533.20 on the National Stock Exchange (NSE) in the intraday deal. 

 

The Auto index was quoting higher fora fourth straight trading day, surging 6 per cent during the period, after the automobile industry reported a steady start to the financial year 2026-27 (FY27). Since the beginning of April month, the index has rallied 16 per cent.  The Nifty Auto index, however, is quoting 5.6 per cent lower from its all-time high level of 29,179.10, which it had touched on January 5, 2026.

 

 

At 01:56 PM, the index was trading as the top gainer among sectoral indices on the NSE and was up 2.2 per cent, as compared to a 0.11-per cent rise in the Nifty 50 index.

 

Among individual stocks, Bharat Forge, Hero MotoCorp and Bosch were up 4 per cent each, while Tube Investments of India, Exide Industries, Bajaj Auto, TVS Motor Company, Mahindra & Mahindra (M&M), Ashok Leyland, Balkrishna Industries and Samvardhana Motherson International were up in the range of 2 per cent to 3 per cent.

What’s driving auto stocks?

 

Wholesale sales volumes of original equipment manufacturers (OEMs) came in steady for April 2026 with passenger vehicle (PV) & Tractors segments outperforming peers. Commercial vehicle (CV) space, too, reported healthy volume prints for the month of April with growth charge led by the medium & heavy commercial vehicles (M&HCV) truck segment.  Overall, the retail registrations remained robust (up 13 per cent Y-o-Y), indicating healthy underlying demand across segments and limited impact from ongoing geopolitical conflict so far.

 

For FY27, ICICI Securities said that growth divergence across segments suggests a more selective outlook, with two-wheelers and CVs expected to lead near-term momentum, while PV and tractor growth could normalise due to a higher base.  "For the month, Maruti, Tata Motors (PV & CV) and Eicher Motors posted a good show vs peers," the brokerage said in a note.

 

That apart, Indian automakers continued to post robust dispatch volumes last month. The government's Vahan data depicts an overall growth of 12.9 per cent Y-o-Y and decline of 3.8 per cent month-on-month (M-o-M) registrations for April 2026. 

 

While companies reported record breaking in March 2026, momentum was expected to lose some steam in April 2026 but proved otherwise. There should be some headwinds in the coming quarter from geopolitical uncertainty which could potentially soften growth in the CV and PV segments, analysts said.

 

"Overall, the boost from the GST rate cuts, rural demand, resilient exports despite challenges and increase in farm activity assisted the automobiles sector. Investors, however, need to be wary of the IMD's forecast of below average rainfall due to El Nino conditions," Mirae Asset Sharekhan said in a auto sector update.

 

On their part, OEMs sellers remain encouraged by the supportive government policies, positive consumer loyalty and sentiment, and the accelerating shift towards electrification and premiumisation.  "These factors position us well for FY’27 as we continue to lead the industry’s transition towards sustainable and innovative mobility solutions," Harshavaradhan Chitale, chief Eexecutive officer, Hero MotoCorp (HMCL) said.

 

HMCL expects the industry to grow in high-single digits in FY27 with scooter shipments projected to grow faster than motorcycle shipments. Similarly, the management aims to outpace industry growth, in both scooters and motorcycles, by expanding its product portfolio through new launches.        ========================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.