Key trigger: Brent Crude prices have declined to $73/barrel, to almost its lowest since start of the US Iran war on February 28, 2026.
Falling crude price is a clear positive for India's automobile and tyre sectors, where raw material and logistics costs are highly sensitive to crude derivatives, say analysts at ICICI Securities.
However, in the past one month, the Nifty Auto index underperformed the market and fell 3.6 per cent, as against 2.7 per cent decline in the Nifty 50 as of June 11, 2026.
Despite prevailing global uncertainties, Indian automakers continued to post robust dispatch volumes in April 2026
The Nifty Auto index has declined nearly 3% in the last two trading sessions amid a fresh spike in Brent oil prices owing to the US-Iran standoff.
According to FADA, February 2026 emerged as best-ever February for 2W, 3W, CV, PV, tractors and overall retail. Data showed that retail vehicle sales jumped by 25.6 per cent Y-o-Y to 24,09,362 units
OEMs expect strong demand momentum to sustain in Q4FY26, and into H1FY27, post the GST 2.0 reforms, analysts said
Segment has outperformed the Nifty Auto index so far this year
Auto stocks in focus: ICICI Securities see limited impact of likely lower EU import tariffs on Indian Auto OEM space which is steadily progressing to clock ~45 lakh units' sales volume in FY26E.
In the past one week, the Nifty Auto index has outperformed the market by surging 5.4 per cent, as against 1.7 per cent gain in the Nifty 50.
The Nifty Auto index has zoomed as much as 157.8 per cent in the last four calendar years as against a 50.6 per cent surge in the benchmark Nifty 50, shows data.
Hero MotoCorp reported a dispatch growth of 40 per cent in December, with volumes at 456,479 units, compared with 324,906 units in the same month last year
Strong order books keep automakers driving past slowdown fears
Thus far in the month of November, the Nifty Auto index has outperformed the market by gaining 3.3 per cent, as against 1.5 per cent rise in the Nifty 50.
Auto stocks in demand following reports of long queues and brisk bookings at auto dealerships on the first day of the GST 2.0 rollout, with leading brands reporting marked spikes in consumer activity.
Tax cuts drive auto stocks higher as Maruti, Eicher, and TVS surge; analysts expect festival season demand to lift sales and profits across India's automobile sector
In the past one month, the BSE Auto index has outperformed the market by soaring nearly 15 per cent, as compared to 1.4 per cent gain in BSE Sensex.
FMCG and auto stocks drove Nifty and Sensex higher by over 1 per cent each, alongside strong cement, insurance buying
In the past one month, the Nifty Auto index has outperformed the market by soaring 9.5 per cent, as against 0.18 per cent gain in Nifty 50.
Nearly 80 per cent of stocks from Nifty Auto, IT and FMCG indices are seen trading above the short-term moving average, indicating strength in the sector, says Axis Securities in a report.