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Informist, Friday, Dec. 26, 2025

NEW DELHI – Shares of Nifty Auto companies are expected to exhibit a positive trend in the near term as analysts remain upbeat about the prospects of the auto industry in this timeframe. "The index is almost near the breakout zone of 28000 points," a Mumbai-based technical analyst said. Shares of Bajaj Auto Ltd. and Hero MotoCorp Ltd. are among the preferred picks based on technical reading.

Friday, Nifty Auto closed 0.5% lower at 27739.85 points. For the week, the sectoral index closed 0.3% higher, mirroring the benchmark Nifty 50 index. Nifty Auto closed in the green for the week, having closed in the red for two consecutive weeks before.

Analysts expect wholesale sales of automobiles in December to grow in double-digit year-on-year across categories. "Sales volumes are likely to be driven by continued positive customer sentiment spurred by better affordability (courtesy GST cuts), new products, interest rate cuts and adequate finance availability despite some pressure on rural sentiment due to a drop in retail crop prices," Nuvama Institutional Equities said in a report Friday.

For auto parts companies, input cost inflation is a margin risk, Kotak Institutional Equities said on Friday. "Over the past few weeks, base metals and PGM (platinum group metals) have rallied sharply due to supply constraints, tariff shocks and safe-haven demand," the company said in a report. This cost pressure has been partially offset by continued weakness in prices of steel, crude-linked plastic, and rubber. 

"At current spot prices, we expect margin pressure of ~70 bps for 2W/PV OEMs (passenger vehicle original equipment manufacturers) and ~30 bps for CV (commercial vehicles) OEMs, with tractor OEMs largely remaining unaffected," the firm said.

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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 Anand JC

Edited by Akul Nishant Akhoury

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