28 Jan 2022 , 10:45 AM
Auto stocks are shining on Friday as investors pin their hopes on better sales and demand amid Union Budget 2022 despite Omicron spread, inflationary pressure and US Fed’s sooner than expected interest rates hike continuing to hinder markets bullish outlook ahead. The broader markets today were in the fast lane so far with substantial contributions made by the auto sector as well.
Experts are optimistic about the sector as India’s electric vehicle push to drive the industry further. By 2030, the country targets to turn 80% of its scooters and motorbikes while 30% of cars are electric, said reports.
At around 10:41 AM, Nifty Auto was trading at 11,703.95 up by 142.35 points or 1.23%. The index has touched an intraday high of 11,761.15 as on the index, 13 scrips advanced and only two declined.
Except for TVS Motor and Maruti Suzuki, all stocks listed on Nifty Auto were on a bull run.
Amara Raja Batteries was the top bull soaring by 3.34%. Mahindra & Mahindra climbed 3.2%, while Eicher Motors and Balkrishna surged 2.9% each. Also, M&M announced that it has clocked nearly one lakh bookings of XUV700, bills 14,000 units by January.
Bharat Forge jumped 2.8%. The auto company backed Tork Motors launched electric motorcycle KRATOS, KRATOS-R recently.
MRF surged 2.7%, while stocks like Exide, Ashok Leyland, Tata Motors and Bosch climbed more than 2% each. Tube Investments and Bajaj Auto advanced 0.99% and 0.92% respectively. Hero MotoCorp up 0.6% on the index.
Index heavyweights Maruti Suzuki and TVS Motors emerged as only bears tumbling by 1.3% and 6.3% respectively. TVS Motor announced the successful acquisition of 75% stake in Swiss E-Mobility Group (SEMG) for $100 Million deal.
Investors are also optimistic about the auto industry for 2022 even though semiconductor shortages continue to be a major spoilsport for production and earnings.
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