Nifty Auto advances 2% to drive bullish markets; Hero MotoCorp, Eicher Motors emerge top gainers

15 Feb 2022 , 12:15 PM

Nifty Auto was driving in the fast lane on Tuesday led by rapid acceleration from Hero MotoCorp and Eicher Motors stocks. The sector tracked quarterly earnings and overall domestic market sentiments which remained broadly bullish. Ashok Leyland, Mahindra & Mahindra, Bajaj Auto stocks, Tata Motors and TVS Motor Company were also bullish.

Indian equity benchmarks Sensex and Nifty50 started Tuesday’s session on a positive note amid cautious gains in other Asian markets, a day after both headline indices suffered their worst fall since April 2021 triggered by the Russia-Ukraine crisis. Gains in IT and consumer shares pushed the headline indices higher, though losses in oil & gas and metal shares limited the upside.

At around 12.15 pm, BSE Sensex was trading at 57,196.62 up 790.78 points or 1.40% and Nifty50 at 17,075.60 up 232.80 points or 1.38%. Nifty Auto was trading at 11,321.95 up 214.80 points or 1.93%, after touching a high of 11,337.70 and low of 11,060.10 during intraday trade. 

Hero MotoCorp rose 4.3% at Rs2,763.50 per piece. The company had posted a weak set of numbers for Q3FY22 due to a significant decline in volume and commodity-linked cost pressure. However, customers’ preference for personal mobility, a positive rural sentiment, and new products, aid its valuation.

Eicher Motors advanced 3.86% at Rs2,670.00 per piece post Q3 earnings. The company posted subdued sales due to semiconductor chips shortage and weak operating income dented profitability in Q3FY22 as profit declined 14.4% to Rs456 crore, down compared to Rs533 crore in Q3FY21. Revenue increased 1.9% to Rs2,881 crore from Rs2,828 crore yoy, but Royal Enfield sales volume dropped 15.6% yoy to 1.67 lakh units.

Bajaj Auto(up 3%) and Mahindra & Mahindra (up 2.18%) were also among the top gainers.

Ashok Leyland was 2% higher at Rs3,593.95 per piece. The company reported a loss of Rs108 crore as against a profit of Rs38 crore for the previous corresponding quarter. Its consolidated revenue registered a growth of 12% yoy at Rs6,660 crore.

Tata Motors and TVS Motor Company also rose around 2% each to boost the sector. Maruti also gained 1.3%. 

Balkrishna Industries down 1.15% was the only auto stock on Nifty50 trading in the red on Tuesday.