Automobile stocks are in demand since the beginning of this week, with most of the vehicles makers reporting strong growth in sales for the month of June.
Among the stocks in the Nifty Auto index, which consists of vehciles makers and auto ancillaries companies, only two are down in negative territory this afternoon. Bosch (down nearly 1%) and Eicher Motors (down marginally) are the two stocks are that are trading lower.
Ashok Leyland tops the gainers list, moving up nearly 7%. Tata Motors, which saw some weak sessions recently amid concerns about a likely drop in sales of JLR due to the tariff imposed by the U.S. administration on imports of cars made in Europe, is gaining about 3.8% now.
Hero Motocorp is up 3.75% and TVS Motor is adding 2.3%. Bajaj Auto and Mahindra & Mahindra are up 2% and 1.5%, respectively, while Maruti Suzuki is up marginally.
Apollo Tyres is up with a gain of 3.5%. Bharat Forge is gaining 2.6%, Motherson Sumi Systems is up 2.3% and Exide Industries is higher by 1.4%. Amararaja Batteries and MRF are up with small gains.
In the past one month, despite today's gains, Ashok Leyland has shed about 8.8%. Eicher Motors and Tata Motors have lost about 4.7% each in the last one month. Hero Motocorp lost marginal ground, while Mahindra & Mahindra, TVS Motor, Maruti Suzuki and Bajaj Auto are up 2.5% - 6.3%, compared to their prices around the same time last month.
Sales growth may sustain in the event of the southwest monsoon bringing in good rains. The government's move to support the farm sector by increasing the minimum support price for kharif crops will help as well.