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Auto stocks fall up to 5% in India on selling pressure
The Nifty Auto index slid as much as 3.3% and lagged the broader Nifty 50 drop of 1.1%, even as August auto sales showed double-digit year over year growth.
Indian auto shares fell sharply on Wednesday, September 2, with the Nifty Auto index declining as much as 3.3% during the session and underperforming the Nifty 50, which fell 1.1%, according to LiveMint Markets.
Two-wheeler stocks were the main drag in the Nifty Auto pack. Hero MotoCorp dropped 6% and Eicher Motors fell 5%, while Bajaj Auto slid 3% and TVS Motor declined 2.65%. Passenger vehicle makers also fell, with Maruti Suzuki down 2%, Tata Motors PV off 1.4%, and M&M down 2.5%.
Auto ancillary stocks declined by up to 4%, including Bharat Forge, Samvardhana Motherson, Bosch, Exide Industries, Uno Minda, and Tube Investments of India, as the sector saw broad selling.
The drop came despite August sales data pointing to underlying demand strength in several segments. LiveMint Markets cited industry estimates showing passenger vehicle sales of about 4.48 lakh cars, SUVs, and vans in August, up 36% year over year from 3.30 lakh a year earlier, alongside growth reported across multiple automakers. Brokerages said the sales figures suggested continued demand momentum, even though the stock market sold off.