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Informist, Thursday, Apr. 17, 2025

MUMBAI – Shares of automobile and auto-part makers are seen higher in the coming week as companies in the sector may get some relief from tariffs. US President Donald Trump Tuesday had hinted that he may exempt car-makers from the 25% tariff on auto-related imports to the US. 

While shares of a few autocomponent players gained on Trump's hint at relief, analysts believe that more information from Tata Motors' management would be required. Investors are awaiting Tata Motors' management's comments about its assessment of the situation as 22% of sales for its subsidiary Jaguar Land Rover comes from the US.  

Further, the monsoon forecast for India has also come in as expected, which will likely help in improving rural demand - a positive for the sector, analysts said.

Latest retail inflation reading has come in at 3.34% for March, which could potentially make room for more interest rate cuts in 2025, analysts said. But the March quarter earnings of these companies will likely disappoint the Street due to muted volume growth and low demand, they added.

Performance of most auto companies has been inconsistent, with only four companies out of the 15 constituents of Nifty Auto -- Eicher Motor, TVS Motors, Maruti Suzuki India and Exide Industries – managing to remain positive, Mrunmayee Jogalekar, a research analyst tracking the automobile sector at Asit C. Mehta Investment Intermediates, said in a note late Wednesday. Moreover, the March quarter earnings also seem to be muted and going ahead, there is the likelihood of a downgrade for the sector this financial year, she said.

On Friday, the Nifty Auto closed at 21373.10 points, up over 1%. During the week, the index rose 4%. In comparison, the Nifty 50 and the BSE Sensex rose 4.5% each. Samvardhana Motherson was the top gainer during the week, while Maruti Suzuki India was the worst performer among the gainers in the sectoral index. Nifty Auto is expected to find support at 20000-20650 points and face resistance at 22100-22600 points, Ajit Mishra, senior vice president – equity technical research at Religare Broking, said.  

Indian companies sold 19.61 million two-wheelers to domestic dealers in FY25, up 9.1% on year, according to data from Society of Indian Automobile Manufacturers Tuesday. Passenger vehicle sales in FY25 rose to 4.30 million units, up only 2% on year. Despatches of three-wheelers rose to 741,420 units in FY25, 6.7% higher than previous year.

Going forward, SIAM expects the growth momentum in FY25 across all segments of the automobile industry to continue in FY26 as well.

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* IPL's Royal Challengers moves HC against Uber India for 'disparaging' advt
* Hero MotoCorp halts production at 4 mfg plants, will resume ops from Mon
* Eicher Motors launches Royal Enfield Classic 350 in Nepal
* India FY26 CV sales may cross 1 mln units, top pre-COVID peak, says CRISIL
* Shipping Corp gets INR-1.57-bln refund after tax appellate tribunal's order
* Data Alert: India FY25 auto sales up 7% YoY, two-wheelers lead growth - SIAM

Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:

End

Reported by Gopika Balasubramanium

Edited by Tanima Banerjee

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