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Informist, Thursday, Aug. 14, 2025

MUMBAI – Shares of automobile companies are likely to see limited upside next week. Market participants await the outcome of talks between US President Donald Trump and his Russian counterpart Vladimir Putin, due Friday. A positive outcome may ease off some tariff pressure on Indian auto and auto component makers that serve the US market. Companies are optimistic about the pick-up of sales in the coming months, which they expect to be supported by the festival season and the fillip from interest rate cuts by the Reserve Bank of India. Analysts said there are no specific triggers for stocks in the sector in the near term and these will mirror investor reactions to US tariffs.

Fundamental analysts are optimistic on tyre makers as natural rubber prices are coming down due to uncertainty on the global front, which will aid these companies to improve margins. Synthetic rubber, a derivative of crude oil, has also come down due to a fall in crude oil prices recently after Organization of the Petroleum Exporting Countries agreed to increase production. 

As for original equipment manufacturers, analysts said two-wheeler makers are expected to fare better than passenger vehicle makers and commercial vehicle manufacturers. Analysts were bullish on Mahindra & Mahindra Ltd., which has been outperforming for some time now. They also said demand for commercial vehicles will likely pick up during the coming months with an increase in spending by the government during this time.

Meanwhile, though urban demand has improved, it will likely take some time to see sales conversions of passenger vehicles get better as transmission of lower interest rates is yet to come into full effect. Sector analysts said consumer trends during the upcoming festival season will be closely monitored. Valuations of original equipment manufacturers are comfortable at the moment, according to analysts.

This week, Nifty Auto index rose 2.7% while Nifty 50 index rose 1%. On Thursday, the sectoral index closed marginally lower at 24118.80 points. Only six out of 15 stocks closed higher among which Ashok Leyland gained the most. "Going ahead, it is likely to trade northward and expected to test 25000 levels in near term. On the flip side, 23400 will provide a strong support," a technical analyst at a domestic brokerage firm said.

TOP HEADLINES

* Earnings Review: Ashok Leyland Q1 PAT growth slowest in 4 qtrs; sales falter
* Data Alert:Scooters rev up Jul 2-wheeler sales, PV demand subdued, says SIAM
* Analayt Concall: Samvardhana Motherson sees better growth in coming quarters
* Earnings Review: Endurance Tech Q1 sales up 17%, expense up 18%, PAT up 11%
* Earnings Review: Samvardhana Motherson consol PAT halves on yr, misses view
* Endurance Tech Apr-Jun consol PAT rises 11% YoY to INR 2.26 billion
* ZF Commercial Apr-Jun net profit rises 21% YoY to INR 1.2 billion
* SC says no coercive action against owners of overage vehicles in Delhi-NCR
* Minda Corp Apr-Jun consol PAT rises 1.7% YoY to INR 653 million
* Mahindra Holdings to invest INR 10.8 bln in Mahindra Susten's rights issue
* PRESS: Lack of EV charging infra holding back buyers, says Maruti Suzuki
* Olectra Greentech Apr-Jun consol PAT rises 8% on year, sales up nearly 6%
* No single case of engine failure on ethanol usage reported, says Puri
* Analyst Concall: Discounts up QoQ in some PV segments Q1, says Tata Motors
* M&M production rises 17% YoY to 82,862 units in July; sales up 25%
* Analyst Concall: Discounts up QoQ in some PV segments Q1 - Tata Motors
* Shortage of rare earth magnets won't hit Q2 production plans - Tata Motors
* Earnings Review: Low volumes, US tariffs hit Tata Motors hard in Q1

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 Deepshikha Bhardwaj

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