Despite the correction, our valuations relative to other emerging markets (EMs) haven't yet come off. Thus, FIIs are a bit cautious
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
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
In May, the S&P BSE Auto index gained 5.6 per cent as compared to 3.8 per cent decline in the S&P BSE Sensex.
M&M, Maruti Suzuki India, Bajaj Auto, Hero MotoCorp, Tata Motors and Motherson Sumi Systems from the Nifty Auto index were up in the range of 8 per cent to 11 per cent.
Nifty Metal index tumbled 6.6 per cent to 2,134, while Nifty Media index slipped 5.5 per cent to 1,518, and Nifty Auto was down 4 per cent to 6,662, as against a 3.9 per cent decline in the Nifty50
Maruti Suzuki India, Hero MotoCorp and TVS Motor Company slipped 2 per cent each, while M&M, Eicher Motors, Bajaj Auto and Ashok Leyland were each down 1 per cent today.
Gains from the corporate tax cut last month, they believe, are likely to be offset by lower sales volume and revenue contraction in key sectors such as automobiles, energy, metals, and mining.
At close, the Nifty Auto index stood at 7,020.75 levels, down 3.83 per cent, as compared to 1.69 per cent decline in Nifty 50 index.
Here's how the scrips of leading two-and four-wheeler manufacturers look on the technical charts.
Thus far in the calendar year 2019, auto index slipped 21 per cent, against 5 per cent rise in the benchmark index
Lack of demand due to illiquid market and weak consumption appetite led to steep fall in auto-sales
8000 seems to be a point that can witness buying momentum, as it hold the two lows of the double-bottom formation. The index did manage to cross the 8800 mark three days ago, but failed to sustain it
Nifty Auto index gained over 3 per cent in intra-day trade on Wednesday, outperforming the benchmark Nifty50 that moved up around 1.3 per cent to 10,685 in intra-day trade.