Auto Stocks Outlook
Seen down; FADA flags growth concern, sales contraction
This story was originally published at 21:03 IST on 11 July 2025
Register to read our real-time news.Informist, Friday, Jul. 11, 2025
`
MUMBAI – Technical analysts expect automobile stocks to be under pressure for the near term. Sluggish retail sales growth across the board and the weak outlook for the industry continue to worry investors. Though there is valuation comfort in most constituents of the sectoral Nifty Auto index, it may not be possible to prevent the downside because of sales concerns, according to analysts.
Friday, the Nifty Auto closed 1.8% lower at 23493.80 points. The index closed 2% lower on a week-on-week basis. Bharat Forge and TVS Motor Co. were the worst-hit constituents of the index, while MRF and Balkrishna Industries rose the most during the week. Kshitija Salvi, technical analyst at IDBI Capital & Markets, expects the Nifty Auto index to face resistance at 24100 points.
"Overall, July is likely to witness mixed fortunes--driven by agrarian tailwinds and school reopenings, yet tempered by seasonal headwinds, elevated price points, and liquidity constraints," the Federation of Automobile Dealers Associations said Monday. In the near term, the federation expects the above-normal monsoon to bolster rural demand, but it has flagged concerns of logistical complexities that could be felt in heavy-to-very heavy precipitation zones. Construction equipment and commercial vehicles could benefit from the robust government capital expenditure expected in June, July, and August in road, railway, metro, and green energy projects.
The early arrival of the monsoon and renewed activity in rural areas have sparked an interest in two-wheelers, but heavy rainfall, variant shortages, and early showers are leading to a moderation in conversions. This indicates that even when people are looking to make purchases, high prices are making them reluctant. This is a worry across the industry now. The high base effect, limited model launches, and tight financing are affecting passenger vehicle sales, but festival planning and fresh incentive schemes are lending some support, the federation said.
Friday, Nuvama Institutional Equities said it has initiated coverage on Hyundai Motor India with a "buy" rating and a target price of INR 2,600, an upside of 24% from Thursday's close. The brokerage is bullish on the stock due to scheduled new launches, expertise from its South Korea-based parent Hyundai Motor Co., and global growth opportunities.
Investors will also focus on the June quarter earnings to place their bets. As per an Informist poll, automobile manufacturers and automotive component makers in the Nifty 200 index are expected to report a fall of 11% in their aggregate net profit and 5% in sales. Weak sales, rising input costs, higher discounts, commodity headwinds, higher advertisement spends, and tariff-related hits are likely to weigh on these companies, analysts said.
TOP HEADLINES
* Eicher Motors arm gets notice for non-payment of INR 3.4 bln in GST dues
* PRESS: Energy efficiency bureau looks to ease emission limits for small cars
* SC junks tax dept notice to seek refunded input tax credit from Ford India
* Ashok Leyland announces record date for proposed 1:1 bonus issue
* Tata Motors group Q1 wholesale sales fall 9% YoY on 10% decline in PV sales
* Hyundai, M&M drive Jun electric PV sales; Tata Motors growth cools, per FADA
* Ola Electric rolls out MoveOS 5 software for its two-wheelers
* ACMA flags need for national critical mineral strategy amid rare earth issue
* Tata Motors arm JLR's Apr-Jun retail sales fall 15% YoY to 94,420 units
* CareEdge sees China's dominance in rare earth elements declining by 2030
* M&M's June car production jumps 20% YoY to 83,435 units
* TVS Motor Co launches Jupiter 110 scooter in Nepal
* FADA says tractors, 3-wheelers drive Jun auto sales growth; PV inventory up
* Tractors, 3-wheelers drive June auto sales growth; PV inventories rise
* Olectra Greentech board appoints PV Krishna Reddy as chairman effective Sat
* M&M to start deliveries of BE 6, XEV 9e Pack Two electric cars by end Jul
Following are the resistance and support levels for the 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 | 458.60 | (-)0.10 | 475.80 | 448.40 |
| Ashok Leyland | 246.25 | (-)1.40 | 252.90 | 242.60 |
| Bajaj Auto | 8,067.00 | (-)4.30 | 8,392.00 | 7,883.00 |
| Balkrishna Industries | 2,655.50 | 1.80 | 2,687.80 | 2,606.00 |
| Bharat Forge | 1,214.80 | (-)7.60 | 1,246.40 | 1,195.00 |
| Bosch | 36,525.00 | 1.70 | 37,951.70 | 35,441.70 |
| Eicher Motors | 5,612.50 | (-)0.30 | 5,722.80 | 5,533.80 |
| Exide Industries | 380.65 | (-)0.70 | 392.80 | 372.50 |
| Hero MotoCorp | 4,218.70 | (-)2.90 | 4,399.60 | 4,099.60 |
| Mahindra & Mahindra | 3,073.20 | (-)2.80 | 3,199.30 | 2,999.30 |
| Maruti Suzuki India | 12,574.00 | (-)0.60 | 12,757.30 | 12,429.30 |
| MRF | 148,240.00 | 3.00 | 150,453.30 | 145,093.30 |
| Samvardhana Motherson International | 150.75 | (-)2.10 | 156.20 | 147.30 |
| Tata Motors | 681.80 | (-)1.10 | 707.10 | 664.40 |
| TVS Motor Co. | 2,754.50 | (-)4.40 | 2,859.20 | 2,693.60 |
| Nifty Auto | 23493.80 | (-)2.00 | 24068.30 | 23146.10 |
| Nifty 50 | 25149.85 | (-)1.20 | 25393.90 | 25007.00 |
BSE Sensex | 82500.47 | (-)1.10 | 83259.60 | 82062.70 |
End
Reported by Gopika Balasubramanium
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
