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Informist, Friday, Aug. 08, 2025

 

MUMBAI – Shares of automobile and auto-component makers are likely to face selling pressure next week as the overall market sentiment is negative due to uncertainty over how India will solve the crisis of double tariffs from the US. Auto-part makers, which have huge exposure to the US, will likely be hit in the near term, analysts said. However, analysts are optimistic that the upcoming festival season will kindle demand and aid sales volume growth in the coming months. Investors will also react to the earnings of Tata Motors, which were out post market hours Friday.    

 

On Friday, the Nifty Auto index closed at 23474.65 points, down 1.4%. Balkrishna Industries was the only stock to close higher in the session, however, on a weekly basis it has declined nearly 6%. Most of the companies in the sector have declared their June quarter earnings, which were largely in line with expectations. Technical analysts see the sectoral index moving in a range of 23400-23930 points. 

 

Launch of new models by the companies during the festival season will increase showroom footfalls, an analyst at a large-sized brokerage said. The analyst is positive on the automobile sector as the festival season is seen kindling demand and sees some improvement in sales of passenger vehicles. On rare earth metals, the analyst said "EVs (electric vehicles) are a fraction of PV (passenger vehicle) industry and two-wheeler makers with EVs are finding alternatives like light rare earth, or importing fully built components, motors, etc," to combat the crisis. He expects these companies to manage the "minor impact". 

 

 "A few auto component makers like Bharat Forge, Balkrishna Tyres, Sona BLW (Precisions Forgings) are likely to be impacted due to US tariffs," he said. "But, the large basket will continue to report good growth." North America accounted for 41% of Sona BLW's overall sales in the June quarter, its investor presentation showed. In the case of Balkrishna Industries, the US constituted 17% of overall revenue from operations. Of Bharat Forge's total exports, 64% went to the "Americas", the press release showed.  

 

Tata Motors declared its June quarter earnings after markets closed Friday. It reported a consolidated net profit of INR 39.2 billion on revenue of INR 1.044 trillion. The management said the tariff situation is expected to ease for its arm Jaguar Land Rover in the coming quarters due to the US-UK trade deal. Given the recent development in China on the luxury tax, the company is remodelling plans to mitigate the impact. The company will take measures such as cost reduction to boost its profitability in the subsequent quarters on a sequential basis, the management said. 

 

 

TOP HEADLINES
* Earnings Review: Low volumes, US tariffs hit Tata Motors hard in Q1

* Shortage of rare earth magnets won't hit Q2 production plans - Tata Motors
* US tariffs a chance for Indian auto parts cos to tap other mkts: ACMA chief
* Heavy industries ministry extends EV adoption scheme by 2 more years
* Bosch gets INR 1.41-bln demand from customs authority
* Analyst Concall: Hero MotoCorp hopeful of festival season spurring demand
* Analyst Concall:Bajaj Auto expects pricing action to offset cost pressure Q2
* Bharat Forge to transfer defence business to subsidiary for INR 4.53 bln
* Earnings Review: Hero MotoCorp revenue dn YoY after 12 qtrs, misses estimate
* Analyst Concall: Bharat Forge eyes new paths to offset likely US tariff hit
* To meet only 50-60% of Chetak output plan Q2 on rare earth issue: Bajaj Auto
* Uno Minda board OKs investing 5 mln euros in Spain arm, acquiring shrs in JV
* Earnings Review: Uno Minda PAT, sales up in double digits, beat Street view
* Earnings Review: After falling for 2 quarters, Bharat Forge PAT rises in Q1
* Earnings Review:Bajaj Auto beats view on robust export, sales of Chetak, CVs
* Uno Minda Apr-Jun consol PAT rises 46.5% YoY to INR 2.91 billion
* Earnings Outlook: Uno Minda's revenue, PAT may see double-digit growth in Q1
* Analyst Concall: Bosch in talks with several OEMs for EV projects in India
* NCLAT asks Gensol Engg officer to not take possession of Sams Auto vehicles
* Ashok Leyland JV signs MoU with IDFC FIRST Bank to launch FASTag services
* Tata Motors arm JLR approves appointment of PB Balaji as CEO, effective Nov
* PRESS: Govt, automobile industry differ over use of ethanol-blended petrol
* Earnings Review: Bosch Q1 PAT more than doubles YoY on one-time gain
* Analyst concall: Sona BLW earnings hit, but mgmt sees issues as 'temporary'
* Analyst Concall: Escorts Kubota eyes 15% of top line via exports in 3-4 yrs
* Earnings Review: Sona BLW Q1 consol PAT falls 12% YoY, misses Street view
* End incentives, opt for mandates to accelerate India's EV push: Niti Aayog
* Earnings Review: Escorts Kubota reports jump in net profit for Apr-Jun
* Maruti Suzuki arm gets INR 861 mln tax order from Gujarat GST authority
* Eicher Motors' India July CV despatches up 6.1% on year, exports up 32.5%
* Hero MotoCorp July sales rise 21% on year, highest growth in over a year
* Maruti Suzuki July total production at 187,073 units, up nearly 1% on year
* Fall in PV sales volume pulls down Tata Motors' July total sales by 4% on yr
* Ramkrishna Forgings Apr-Jun consol PAT falls 78.5% YoY to INR 118 million
* Maruti Suzuki says banking on Onam to kickstart positive festival season
* Hyundai Motor India's despatches fall 7% in July on weak domestic sales
* Maruti Suzuki compact car sales recover in July, utility vehicles fall again
* Earnings Review: Tube Invest Q1 sales growth at 3-qtr high, PAT up 9% YoY
* Samvardhana Motherson to set up JV with Taiwanese co Macauto for components

 

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:

 

 

Company	Price	Week-on-week  change in %	Resistance	Support
Apollo Tyres	434.20	(-)1.50	447.80	414.20
Ashok Leyland	115.42	(-)4.10	122.30	111.70
Bajaj Auto	8224.00	2.20	8320.70	8136.70
Balkrishna Industries	2428.40	(-)5.70	2466.70	2378.70
Bharat Forge	1135.20	(-)1.00	1186.10	1103.50
Bosch	38325.00	(-)5.10	39495.00	37635.00
Eicher Motors	5663.00	2.40	5732.70	5620.70
Exide Industries	375.65	(-)1.00	383.70	370.20
Hero MotoCorp	4599.80	6.70	4757.20	4509.40
Mahindra & Mahindra	3144.20	(-)0.50	3244.20	3085.60
Maruti Suzuki India	12590.00	2.30	12787.30	12465.30
MRF	142715.00	(-)2.20	145838.30	140438.30
Samvardhana Motherson International	91.45	(-)4.30	95.90	88.80
Tata Motors	633.70	(-)2.30	661.80	615.90
TVS Motor Co.	2968.90	3.90	3048.60	2920.20
Nifty Auto	23474.65	0.30	24053.30	23149.80
Nifty 50	24363.30	(-)0.80	24676.80	24180.80
BSE Sensex	79857.79	(-)0.90	80835.90	79286.80

 

End

 

Reported by Gopika Balasubramanium

Edited by Tanima Banerjee

 

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