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Informist, Friday, Mar. 6, 2026

 

MUMBAI – Shares of automobile companies are expected to consolidate in the coming week with a negative bias amid the escalating tensions in West Asia. Though the region contributes only a small portion of global auto demand, the Street will monitor the indirect impact of higher crude oil or energy prices, higher freight rates, and supply chain disruptions.

 

The military conflict between Iran and the US-Israel combine entered its seventh day Friday, with Iran and Israel launching fresh strikes at each other. The hostilities in the region began with Israel and the US jointly attacking Iran on Saturday, killing hundreds, including the country's Supreme Leader, Ayatollah Ali Hosseini Khamenei. Following this, shipping through the Strait of Hormuz, a critical transit route that accounts for nearly 20% of global crude oil and gas flows, has ground to a near halt amid Iranian attacks on oil tankers in the region. 

 

This can potentially lead to higher shipping costs for export-heavy industries, ICICI Direct Research said in a report Thursday. Among automobile original equipment manufacturers, Bajaj Auto is a key export-heavy business with around 33% revenue coming from exports, the brokerage said. In the auto ancillary domain, Bharat Forge, Balkrishna Industries, and Sansera Engineering have 26–70% of their revenue coming from exports, ICICI Direct Research said. However, the brokerage expects the impact to be mitigated by depreciation in the rupee against the dollar. 

 

Further, the ongoing geopolitical tension in West Asia and the blockade of the Strait of Hormuz have led to a sharp rise in crude oil prices. The May futures contract of Brent Crude Oil on the Intercontinental Exchange rose to an intraday high of $86 per barrel Friday, rising around 11% since Monday. This is sentimentally negative for domestic tyre players as they use crude derivatives as their major raw materials. If crude oil prices remain high for a long time, they will potentially lead to a decline in gross margins for tyre players, ICICI Direct Research said. 

 

Friday, the Nifty Auto closed 1.1% lower at 27076.40 points with most of its constituents ending in the red. Over the week, the sectoral index fell 3.8% compared with 2.9?cline in both benchmark indices. Next week, Nifty Auto is expected to move sideways, Yadnesh Shendge, technical analyst and financial risk strategist at Nirmal Bang Institutional Equities, said. The index is expected to find support at 26500-26480 levels next week, he said. However, if the index opens higher Monday, it could rise to 28500–28650 levels, Shendge said.  

 

The wholesale sales data for February showed strong momentum in despatches amid the wedding season, steady export traction, and positive rural sentiment, with sharper customer engagement and a shift toward higher value models. Domestic original equipment manufacturers delivered robust performance across passenger vehicles, two-wheelers, commercial vehicles, and tractors, with most posting double-digit growth. With a healthy pipeline of new launches and continued benefits from goods and services tax rate reductions, the industry remains well-positioned to close FY26 on a strong note, Nirmal Bang Institutional Equities said in a report Wednesday. 

 

TOP HEADLINES

 

* Gas shortage may see Tata Motors cut Sanand output, sources say
* Mazagon Dock says talks for INR-990-bln contract with Indian Navy completed
* Garden Reach in MoU with Kalyani Strategic to jointly develop naval systems
* Bharat Forge arm partners Garden Reach for naval, commercial shipbuilding
* SEBI asks Force Motors to share details about earnings, shr price movement
* ANALYSIS: Auto cos' Q3 profit, revenue growth soured by Tata Motors PV slump
* Bharat Forge to raise up to INR 8 billion via unsecured rupee term loan
* GE Shipping to buy second-hand Kamsarmax dry bulk carrier to expand fleet
* West Asia hostilities force IndiGo to cancel more than 500 flights since Sat
* Ola Electric offers Roadster range from INR 79,999 as part of 'Holi Mahotsav'
* Force Motors' Feb exports down 18%, domestic sales up 9% on year
* M&M's associate co to exit agricultural machinery business in Japan
* Bajaj Auto's Feb despatches grow at 27-month high of 27% to 448,259 units
* Ashok Leyland Feb commercial vehicles despatches hit 11-month high of 22,157
* Maruti Suzuki Feb production up 19% YoY on higher utility vehicles' output
* Ola Electric announces financial sops for existing customers to push sales
* Maruti Suzuki sees output constraints ease as it starts new line in Apr
* Hyundai Motor Feb despatches up nearly 13% on year at 66,134 units
* Hero MotoCorp two-wheeler despatches rise 44% YoY, highest since May 2022
* India's freight costs to rise if flows through Hormuz disrupted, says Kpler
* TVS Motor two-wheeler sales up 30% YoY at 507,862 Feb, EV despatches up 60%
* Eicher Motors' Royal Enfield motorcycle Feb sales growth slowest in 10 mos
* Tata Motors commercial vehicle sales in Feb up 32% on year at 42,940 units
* Tata Motors PV car sales jump 35% on year in Feb on robust India show
* Eicher Motors CV arm despatches rise 23% YoY in Feb on strong India sales
* M&M's Feb auto despatches grow 18% on year; SUV sales growth at 5-month low
* Maruti Suzuki Feb despatches up 7% on year but at 5-month low
* Positive rural mood drives Escorts Kubota Feb India tractor sales 22% higher
* Several domestic airlines halt operations to West Asia amid US-Iran conflict
* Aim to have up to 700 Nexa Studio outlets in India by 2031 - Maruti Suzuki
* SpiceJet says will comply with SC directions, to deposit INR 1.45 bln

 

The following are the resistance and support levels for key automotive 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 LTD	439.75	(-)3.20	448.80	433.20
ASHOK LEYLAND LTD	194.67	(-)7.80	205.50	188.70
BAJAJ AUTO LTD	9816.00	(-)1.60	9991.30	9602.30
BALKRISHNA INDUSTRIES LTD	2249.70	(-)5.60	2307.80	2201.00
BHARAT FORGE LTD	1923.90	0.70	1968.70	1857.50
BOSCH LTD	33375.00	(-)8.40	33991.70	32611.70
EICHER MOTORS LTD	7620.50	(-)4.90	7784.80	7520.80
EXIDE INDUSTRIES LTD	315.95	(-)5.50	326.10	310.10
HERO MOTOCORP LTD	5512.50	(-)3.50	5606.20	5443.20
MAHINDRA & MAHINDRA LTD	3332.50	(-)1.90	3390.20	3286.20
MARUTI SUZUKI INDIA LTD	14159.00	(-)4.70	14597.70	13895.70
MRF LTD	138780.00	(-)1.60	144093.30	135593.30
SAMVARDHANA MOTHERSON INTERNATIONAL LTD	122.77	(-)7.90	128.20	119.80
TATA MOTORS LTD	474.25	(-)6.10	500.30	458.10
TATA MOTORS PASSENGER VEHICLES LTD	350.75	(-)8.30	356.50	346.50
TVS MOTOR COMPANY LTD	3784.00	(-)2.20	3849.40	3735.20
Index	Levels
NIFTY AUTO	27076.40	(-)3.80	27425.30	26868.00
NIFTY 50	24450.45	(-)2.90	24807.50	24237.20
BSE SENSEX	78918.90	(-)2.90	80102.20	78220.50

 

End

 

US$1 = INR 91.74

 

Reported by Arya S. Biju

Edited by Saji George Titus

 

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