Nifty Auto Climbs 2.38%; Sona Blw, Eicher Motors, Exide Industries, Hero MotoCorp, Ashok Leyland Among Top Performers

Mumbai, April 10: The Nifty Auto index traded sharply higher on Friday, adding 2.38% by the close at 26,517. The index hit an intraday high of 26,640 before pulling back into the closing hour — among the strongest and most uniform performances across the basket on Friday, with most stocks trading north of their previous close. Nifty Auto began the day at 26,018 and spent just a few minutes around the bell testing its low of 26,002 before buyers stepped in to take prices higher into the close on solid volume of over 7.33 crore shares worth ₹4,967 crore.

Top Performer: Sona BLW

Sona BLW Precision Forgings gained 5.72% to ₹552 as of 3PM on Friday, rising to a session high of ₹559 against a low of ₹526 — an intraday range of ₹33 that suggests ample conviction on both sides of the trade, but with buyers in control. The stock previously closed at ₹523, meaning Friday’s move of nearly ₹30 is notable re-rating in a single session. Volumes of 40 lakh shares worth ₹222 crore traded hands. With increasing focus on auto component manufacturers that benefit from growing EV demand, stocks like Sona BLW are seeing investor interest as increasing vehicle production lifts segmental fortunes.

Second Top Performer: Eicher Motors

Eicher Motors added 3.53% to ₹7,399 by 3 PM on Friday, after touching a low of ₹7,201 and a high of ₹7,429 — an intraday range of ₹228 that captures just how active the stock traded on Friday. The stock’s previous close was ₹7,147, so Eicher added ₹252 on Friday alone on volume of almost 6 lakh shares worth ₹438 crore. Premium motorcycles are seeing tailwinds from improving consumer confidence and falling fuel prices, creating a sweet spot for Eicher Motors, which dominates India’s premium motorcycle space via Royal Enfield.

Third Top Performer: Exide Industries

Exide Industries traded higher by 3.74% to ₹322 as of 3 PM on Friday. Prices oscillated between a low of ₹312 and a high of ₹325, against a previous close of ₹311. Trading volumes surpassed 35 lakh shares worth ₹113 crore. A manufacturer of conventional as well as lithium-ion batteries for automobiles, Exide is benefiting from both auto sector normalization as well as long-term structural tailwinds from the EV story.

Fourth Top Performer: Hero MotoCorp

Hero MotoCorp traded 3.09% higher to ₹5,447 by 3 PM on Friday, rising to a high of ₹5,479 against a low of ₹5,295 and a previous close of ₹5,284 — good intra-day gain of ₹195 from its open on volume of over 7 lakh shares worth ₹385 crore. Cheaper crude is translating into stronger demand for mass-market two-wheelers like those sold by Hero MotoCorp, whose core customer is exceptionally sensitive to pump prices.

Fifth Top Performer: Ashok Leyland

Ashok Leyland was the final member of the top-5 with a gain of 3.97% to ₹177, ranging from a low of ₹172 to a high of ₹177 against its previous close of ₹170. The low-high range of ₹5 makes for an unusually narrow trading range considering the stock’s gain on the day, implying strong directional buying pressure rather than speculative trades contributing to the bulk of Ashok Leyland’s Friday move. Over 3.09 crore shares worth ₹545 crore traded hands, making Ashok Leyland by far the most voluminous name in the Nifty Auto basket on Friday. Commercial vehicles are another sub-segment of the auto sector that tends to correlate strongly with macro improvements, with infrastructure spending and freight volumes leading the sweet spot for trucks and bus-makers like Ashok Leyland.

Why is Auto Stock Moving Higher?

Oil Heading Lower
U.S. crude traded near $88 per barrel on Friday, down from Thursday’s highs of $97, and well off the $111-plus it hit earlier this week during the peak of the Iran crisis. West Texas Intermediate futures rose by about 2% on Friday morning after officials from Iraq’s federally administered Kurdish region stated that Iranian rebels had attacked Iraq’s Northern Oil Company, halting production at the Ahdab oilfield. Saudi Arabia announced that a drone attack on one of its crude facilities would delay output by 400,000 barrels per day. While both events have the potential to tighten global oil supply, markets have opted to consolidate between two major support and resistance levels on Friday afternoon — with Brent crude trading near the $97 handle, buyers appear comfortable with current prices staying below the Iran crisis-driven highs. While Wednesday’s post-ceasefire lows came in the low $90s for Brent, the index has climbed back up toward $100 on Friday following the Saudi attack news. Auto stocks are responding positively to crude prices that remain meaningfully lower than they were at the start of the week.

India’s Auto Sector Receives Four Strong Tailwinds

1. Declining oil prices: Stocks in the auto sector are seeing their biggest catalyst today from the near-20% plunge in crude prices since Monday. Cheaper crude translates into vastly improved cost structures for auto makers, while also improving fuel affordability for Indian consumers.
2. Markets are rotating into cyclical sectors: Crude has taken most of the credit for today’s auto sector move, but the broader market is shifting risk-on today as well. India’s auto companies boast some of the highest leverage to macro improvements within the equity market, so they tend to benefit from cyclical investor flows more than most sectors.
3. Rising demand: From motorcycles to commercial vehicles, there are numerous indicators that suggest demand for automobiles in India remains healthy. Consumption patterns have remained stable through the pandemic-led slowdown, and there are reasons to expect them to remain elevated going forward as well.
4. Positive sentiment around upcoming quarterly earnings: Auto companies are expected to see double-digit revenue growth this quarter, which is helping boost stocks today. While some degree of forward-looking progress is already priced into equity valuations, healthy quarterly earnings would provide fund managers covering the sector an added reason to buy into auto stocks at current levels.

Source: https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY%20AUTO