Auto Stocks Outlook
Seen higher next week; wholesale sales data eyed
This story was originally published at 22:25 IST on 29 August 2025
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MUMBAI – Shares of automobile companies will likely react to their monthly sales data, releasing Monday. While GST rationalisation by the government is seen as a positive, there is more to it with respect to inventory and sales, analysts said. Technical analysts are bullish on the Nifty Auto index, mainly due to the likely tax cut measures which are expected to expedite sales. Upcoming festival season is also expected to turn the tides in favour of the sector by increasing store footfalls to conversion, analysts said.
"Nifty Auto index is holding strong above its break away gap support zone," said Vipin Kumar, assistant vice president of equity research and senior derivative analyst at Globe Capital Market. "Going ahead, we continue to uphold our bullish view on (Nifty) Auto index and expect it to test 25600 and higher levels in immediate near term." The sectoral index is expected to face a strong support at 24780-24250 points, Kumar said.
This week, the Nifty Auto index fell 1.5%, while Nifty 50 fell faster at nearly 2%. On Friday, the sectoral index closed 0.9% lower at 24960.85 points. Only five of the 15 stocks closed higher. Mahindra & Mahindra fell the most during the week. On other hand, Ola Electric Mobility gained 14% after it recieved a certification from the government for production-linked incentives for its Gen 3 scooter portfolio.
Nomura Global Market Research sees wholesale sales for August to be highly unpredictable. "While the festive season is early this year, which should support strong channel filing, the likely reduction of GST rates has made dealers concerned about stocking up high-cost inventory," it said. The festival season is to begin from Oct. 20 this year compared with Oct. 31 previous year.
"Retail sales are significantly slow at present, in anticipation of GST cuts," the broking firm said. Hence, some automobile makers, especially those with a higher exposure to large cars, might look to manage wholesales and ramp up shipments after the GST cuts in September, while others are likely to to build inventory, Nomura said.
Overall, for the passenger vehicle industry, Nomura sees wholesale sales to decline 4% on year. "The potential reduction of GST rates has thus further delayed purchase decisions, adding to the weak volume trend of the past few months," the report said. Two-wheeler wholesale sales will likely grow 3% on year. Medium and heavy commercial vehicle wholesale sales are likely to be up 5% on year, Nomura said.
TOP HEADLINES
* Tata Motors launches Tata Winger Plus at ex-showroom price of INR 2.06 mln
* UP, Maharashtra lead auto despatches across all segments in Apr-Jun - SIAM
* Uno Minda board appoints Garima Garg as chief human resource officer
* TVS Motor launches electric scooter Orbiter aimed at urban commute
* ANALYSIS: Auto cos' Q1 PAT growth below estimates; fourth straight YoY fall
* Escorts Kubota launches Kubota MU4201; enters 41-44 horsepower category
* Loan demand for tractors on pause amid GST ambiguity, says M&M Fincl MD
* PM Modi flags off e-Vitara production from Maruti Suzuki's Gujarat facility
* Ola Electric gets PLI certification for its Gen 3 scooter portfolio
* NCLT sanctions Tata Motors' scheme of arrangement with passenger, CV units
* Mazagon Dock says news on submarine talks with Thyssenkrupp factually wrong
* M&M energy arm Mahindra Susten appoints Avinash Rao as MD, CEO
* PIL in SC seeks order to govt to allow sale of non-ethanol blended petrol too
* See PV demand falling till clarity on GST emerges, says Tata Motors official
* Bajaj Auto resumes supply of electric scooter Chetak across dealerships
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 | 462.20 | (-)0.80 | 469.00 | 451.30 |
| Ashok Leyland | 126.98 | (-)3.20 | 131.50 | 124.50 |
| Bajaj Auto | 8631.50 | (-)0.60 | 8802.80 | 8485.80 |
| Balkrishna Industries | 2289.40 | (-)4.50 | 2369.60 | 2215.00 |
| Bharat Forge | 1106.70 | (-)1.50 | 1139.10 | 1084.30 |
| Bosch | 39960.00 | 1.60 | 41080.00 | 38500.00 |
| Eicher Motors | 6103.00 | 3.00 | 6220.30 | 6011.30 |
| Exide Industries | 396.25 | 0.10 | 402.70 | 388.20 |
| Hero MotoCorp | 5087.70 | 1.80 | 5186.00 | 5012.20 |
| Mahindra & Mahindra | 3199.50 | (-)6.00 | 3315.20 | 3129.20 |
| Maruti Suzuki India | 14791.00 | 3.10 | 14935.70 | 14619.70 |
| MRF | 140955.00 | (-)4.40 | 143858.30 | 138448.30 |
| Samvardhana Motherson International | 92.75 | (-)2.50 | 96.90 | 89.00 |
| Tata Motors | 669.00 | (-)1.70 | 685.90 | 659.60 |
| TVS Motor Co. | 3276.60 | (-)0.60 | 3352.10 | 3200.30 |
| Nifty Auto | 24960.85 | (-)1.50 | 25322.50 | 24711.00 |
| Nifty 50 | 24426.85 | (-)1.80 | 24635.80 | 24300.30 |
BSE Sensex | 79809.65 | (-)1.80 | 80523.00 | 79385.10 |
End
Reported by Gopika Balasubramanium
Edited by Akul Nishant Akhoury
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