Auto Stocks Outlook
Seen up next week; Nifty Auto likely to touch 25000 pts
This story was originally published at 20:52 IST on 16 May 2025
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NEW DELHI – Shares of automobile and auto-ancillary companies are seen rising next week as market sentiment is positive, especially for tractor-makers and two-wheeler manufacturers on expectations of the recovery in rural demand gathering steam amid better agricultural yields after the monsoon, according to analysts.
The Nifty Auto closed at 23953.15 points Friday, outperforming the Nifty 50 this week. The sectoral index gained nearly 6% in the past five trading sessions, against the benchmark's 4.2% rise in the same period. This was mainly because of the strong rally in shares of two-wheeler makers such as Hero MotoCorp and Bajaj Auto, which rose nearly 13% and 10%, respectively. Balkrishna Industries is the only stock in the index which closed in the red, declining a little over 1%.
The Nifty Auto looks strong on the charts and is likely to rise to 25000 points, Nandish Shah, senior technical and derivatives analyst at HDFC Securities, said. Shah expects the index to find support at 23400 points. If the index closes below this level, it could fall further, he said.
Four original equipment makers reported their earnings for the March quarter this week--Hero MotoCorp, Eicher Motors, Tata Motors, and Hyundai Motor India. Barring Hero MotorCorp, the others reported better-than-expected earnings for the quarter. However, brokerages are bullish on Hero MotoCorp, simply because it is better placed to benefit from the recovery in rural demand.
Hero MotoCorp's management expects the two-wheeler industry to report volume growth of 7-8% in FY26 but said the company is likely to outperform its peers. Brokerages said the company has a wide network in rural areas and will also benefit from better product offerings and new launches this year. Customers' acceptance of the new variants of the Classic, Bullet, and Hunter motorcycles are expected to benefit the Eicher Motors stock.
In the near term, valuations of two-wheeler makers such as Hero MotoCorp and car manufacturers such as Maruti Suzuki India are at comfortable levels, Ravi Gupta, research analyst at Incred Equities, said. Gupta finds Mahindra & Mahindra very expensive and expects the stock to correct slightly in the near term.
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Following are the resistance and support levels for automobile stocks for next week as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Apollo Tyres | 494.25 | 5.90 | 522.20 | 469.60 |
| Ashok Leyland | 237.33 | 7.10 | 243.10 | 233.70 |
| Bajaj Auto | 8482.50 | 10.40 | 8634.20 | 8204.20 |
| Balkrishna Industries | 2709.70 | (-)1.20 | 2747.20 | 2671.40 |
| Bharat Forge | 1263.00 | 8.40 | 1287.40 | 1228.20 |
| Bosch | 31655.00 | 5.50 | 32085.00 | 31255.00 |
| Eicher Motors | 5509.50 | 3.50 | 5623.20 | 5434.20 |
| Exide Industries | 393.05 | 8.90 | 402.10 | 379.90 |
| Hero MotoCorp | 4345.30 | 12.80 | 4402.90 | 4265.50 |
| Mahindra & Mahindra | 3135.60 | 5.20 | 3167.90 | 3098.90 |
| Maruti Suzuki India | 12995.00 | 6.10 | 13171.70 | 12823.70 |
| MRF | 140265.00 | 1.90 | 143368.30 | 138448.30 |
| Samvardhana Motherson International | 147.04 | 6.70 | 149.80 | 142.10 |
| Tata Motors | 730.70 | 3.10 | 749.20 | 716.30 |
| TVS Motor Co. | 2841.50 | 6.70 | 2901.00 | 2747.20 |
| Nifty Auto | 23953.15 | 5.90 | 24145.70 | 23681.30 |
| Nifty 50 | 25019.80 | 4.20 | 25131.20 | 24897.30 |
BSE Sensex | 82330.59 | 3.60 | 82698.60 | 81962.90 |
End
Reported by Gopika Balasubramanium
Edited by Rajeev Pai
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