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Informist, Friday, Jan. 2, 2026

 

MUMBAI – Shares of automobile companies are expected to rise in the near term amid sustained retail demand and robust exports, analysts said. While valuations are at a premium, analysts expect some upside on the back of likely stronger December-quarter earnings, as automobile companies were the biggest beneficiaries of the lower goods and services tax, they said.

 

The auto sector posted broad-based, strong double-digit wholesale growth across all segments in December, driven by goods and services tax cuts and improved consumer sentiment, Arun Agarwal, vice president – fundamental research at Kotak Securities, said in a note on Friday. Retail demand remained robust post-festive season, while exports showed momentum in commercial vehicles, tractors, and two-wheelers, Agarwal said.

 

While the rise in domestic two-wheeler wholesale volumes was driven by strong demand across segments and a recovery in replacement demand, analysts said. Domestic passenger vehicle volumes were supported by strong retail demand following GST rate cuts and improved consumer sentiment. The commercial vehicle segment also saw improved sales, supported by a recovery in medium- and heavy commercial vehicles on a low base and continued recovery in light commercial vehicles, analysts said.

 

Automobile sector growth is driven by affordable financing, new launches, and tax rationalisation, Geojit Investment Services Ltd. said in a report. Exports have been aided by cost-efficient production, geographical diversification, and localised supply chains, the brokerage said. Domestic sales growth is expected to sustain despite a high base, it added.

 

Friday, Nifty Auto closed 1.1% higher at 28803.65 points. The index hit an all-time high of 28867.05 points earlier in the day. "Going ahead, we expect it to continue its northward journey and suggest traders accumulate the participating stocks and select auto ancillary stocks on dips," Vipin Kumaar, technical and derivatives analyst at Globe Capital Market, said. "Immediate buying supports are placed around 28000 and resistances are at 29500-30000," he added.

 

TOP HEADLINES

* Policy uncertainty clouding co's flex-fuel car plans: Maruti Suzuki official
* Exports, 2-wheelers drive Bajaj Auto Dec total sales up 14% to 369,809 units
* Maruti Suzuki total output rises 34% on year in Dec; makes more mini cars
* Hero MotoCorp's December sales rise over 40% on year to 456,479 units
* TVS Motor Dec total sales rise 50% on year to 481,389 units
* Olectra Greentech commences ops at new e-bus mfg facility at Hyderabad
* Maruti Suzuki says Dzire sedan pips SUVs to emerge as top-selling car 2025
* GST cut fuels Hyundai Motor Dec sales to 58,702 units, up 6.6% on year
* Force Motors Dec total sales up 49.7% on year, domestic sales rise 48.7%
* Tata Motors PV sales up 14% on year in Dec at 50,519 units
* Ola Electric signals business turnaround, driven by gain in market share
* Ashok Leyland's CV sales hits 9-month high of 21,533 units in December
* Maruti Suzuki sells 217,854 units in Dec to touch all-time high in 2025
* Royal Enfield motorcycle sales up 30% at 103,574 units Dec - Eicher Motors
* M&M's wholesale sales up 25% YoY in Dec at 86,090 units, SUV sales rise 23%
* Eicher Motors' Dec CV sales grow 25% on year to 9-mo high of 10,384 units
* Escorts Kubota's tractor sales jump 39% on year in December to 7,577 units
* Kim demits office as MD of Hyundai Motor India, Garg to take over Thu
* Govt disburses 9% of projected incentive for auto PLI scheme as of Dec-end
* Govt ends sops for L5 e-3 wheelers under PM E-DRIVE scheme as targets met
* Hyundai Motor to hike car prices from Jan 1 to offset input price pressure
* Bharat Forge signs INR-16.7-bln pact with def min for compact firearms
* Bharat Forge, PLR Systems sign INR 27.7-bln contract with defence ministry
* Hyundai Motor launches 2 dedicated taxi models, prices start at INR 599,900
* TVS Motor signs MoU with Manba Finance for retail finance solutions
* Ola Electric receives govt certification for Roadster X+ 9.1kWh motorcycle
* Nuvama sees double-digit YoY growth in Dec automobile sales volumes
* Ola Electric scales up deliveries of 4680 Bharat Cell-powered vehicles
* ICRA ups FY26 tractor volume growth view to 15-17% from 8-10% seen earlier
* Renault India to raise prices of its cars by up to 2% in January
 

Following are the resistance and support levels for key automobile 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	497.25	(-)1.70	505.10	488.10
Ashok Leyland	188.78	8.10	193.70	181.30
Bajaj Auto	9502.50	4.80	9804.50	9159.50
Balkrishna Industries	2368.60	3.30	2422.90	2282.90
Bharat Forge	1477.20	2.30	1501.30	1450.30
Bosch	39420.00	9.90	41840.00	34940.00
Eicher Motors	7334.50	0.10	7422.80	7253.80
Exide Industries	367.70	0.70	372.90	359.90
Hero MotoCorp	5933.00	5.30	6100.30	5791.30
Mahindra & Mahindra	3802.40	5.00	3854.70	3717.10
Maruti Suzuki India	16960.00	2.20	17170.00	16618.00
MRF	150685.00	0.30	152528.30	149548.30
Samvardhana Motherson International	122.04	2.30	125.80	119.80
Tata Motors	442.25	8.20	456.30	425.80
Tata Motors Passenger Vehicles	370.35	3.20	375.00	366.30
TVS Motor Co.	3847.80	5.90	3928.80	3785.20
Nifty Auto	28803.65	3.80	29099.60	28338.60
Nifty 50	26328.55	1.10	26483.90	26040.70
BSE Sensex	85762.01	0.90	86290.60	84804.60

 

End

 

Reported by Gopika Balasubramanium

Edited by Saji George Titus

 

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