Nifty Auto crosses 200-DMA as auto stocks extend gains

The Nifty Auto index climbed over 2 percent on Thursday, 25 June, crossing its 200-day moving average as easing crude and metal prices, along with strong retail registrations, drove broad-based buying in auto and ancillary stocks.

Most large auto names, including Maruti Suzuki, Mahindra & Mahindra, TVS Motor, Ashok Leyland, Hero MotoCorp and Eicher Motors, gained more than 2 percent, helping the index extend its weekly and monthly uptrend despite underperformance earlier in 2026.

Market overview

Index / Metric	Level / Change	Move & % Change	Comments
Nifty Auto	Above 200-DMA	approx. +2 to +3% intraday	Rebounded, up 15% from recent West Asia-related lows.

• Nifty Auto traded higher in morning and strengthened in the second half.
• Index looked set to end a two-day losing streak.
• Weekly performance: up for the third consecutive week.
• Monthly performance: up for the third consecutive month.
• Auto stocks had underperformed broader market earlier in 2026.
• Index gains followed easing commodity and fuel price concerns.

Key movers

Top gainers in Nifty Auto

Stock	Sector	Notable Factor
Maruti Suzuki	Passenger vehicles	Rose more than 2 percent, supported by strong PV retail trends.
Mahindra & Mahindra	PVs / Tractors	Gained over 2 percent, benefits from SUV and tractor positioning.
TVS Motor	Two-wheelers	Among top gainers, up around 4 to 6.6 percent.
Ashok Leyland	Commercial vehicles	Advanced over 2 percent, aided by export and CV demand recovery.
Hero MotoCorp	Two-wheelers	Climbed more than 2 percent in morning trade.
Eicher Motors	Two-wheelers	Rose over 2 percent, continues two-wheeler outperformance trend.
Samvardhana Motherson	Auto ancillaries	One of the strongest index gainers, up 4 to 6.6 percent.
Bharat Forge	Auto ancillaries	Among biggest outperformers within ancillaries.
Bajaj Auto	Two-wheelers	Gained 1 to 3 percent in the session.

• Nifty Auto index up about 3 percent around 2:10 pm, per intraday data.
• Samvardhana Motherson, M&M, TVS Motor, Maruti, Ashok Leyland led gains.
• Barring Tube Investments and Exide Industries, 13 index stocks traded higher.
• Two-wheelers outperformed four-wheelers in 2026 so far.
• Eicher Motors and Bajaj Auto outpaced Hero MotoCorp and TVS Motor earlier in the year.
• Auto ancillaries Bharat Forge and Sona BLW were notable outperformers YTD.

Sectoral and demand trends

Sector / Segment	Direction (approx.)	Key Drivers
Passenger vehicles	up about 20-30% YoY	Strong retail demand, premiumisation, resilient urban consumption.
Two-wheelers	up over 20% YoY	Improving rural sentiment, replacement demand, EV traction.
Commercial vehicles	up about 19.5% YoY	Infrastructure spending, freight demand, better fleet utilisation.

• June VAHAN data showed total registrations up 23 percent month to date.
• Passenger vehicle registrations rose around 30 percent.
• Two-wheeler registrations increased more than 20 percent.
• Strong retail demand supported both OEMs and auto ancillaries.
• Industry faced export-related supply chain issues in prior 2 to 3 months.
• Companies such as Ashok Leyland and Uno Minda had flagged export challenges.
• Supply chain conditions have since improved, easing delivery constraints.

Macro drivers and outlook

Statistic	Value / Change	Context
Brent crude oil	Near USD 70 per barrel	Returned to pre-war levels, easing fuel and inflation concerns.
Industry retail sales Q4FY26	+23.3% YoY	Broad-based growth across PVs, two-wheelers and CVs.

• Crude at pre-war levels reduced worries on fuel price volatility.
• Lower crude also dimmed prospects of additional RBI rate hikes.
• Metal prices fell sharply, easing a key input cost headwind.
• Commodity costs had earlier prompted price hikes by many OEMs.
• Sustained lower input prices are expected to support margins.
• Retail demand remained resilient across segments in Q4FY26.
• Passenger vehicles grew 20.3 percent YoY in Q4FY26.
• Two-wheelers rose 25.0 percent YoY in the same quarter.
• Commercial vehicles expanded 19.5 percent YoY.
• Structural drivers cited: premiumisation, electrification, replacement demand.
• Continued infrastructure spending seen as supportive for CV and tractor demand.
• Experts expect passenger vehicle volumes to grow 4 to 6 percent in FY27.
• According to SIAM, industry expects growth across all vehicle categories in FY27.

• “We believe structural growth drivers remain firmly intact, including premiumisation, electrification, replacement demand and continued infrastructure spending” Choice Equity Broking.

Technical outlook for Nifty Auto

• Nifty Auto index crossed its 200-day moving average, a key long-term trend indicator.
• Index is up about 15 percent from recent lows hit during West Asia tensions.
• Auto stocks, despite the rebound, remain underperformers for 2026 year to date.
• Maruti Suzuki and M&M shares are still down 15 to 17 percent in 2026.
• Crossing the 200-DMA signals recovery from prior correction phase.

Industry sentiment and policy backdrop

• According to SIAM, domestic momentum from H2 FY26 is expected to continue in FY27.
• Auto OEMs remain optimistic on long-term growth drivers in India.
• Supportive factors cited: extensive road network and logistics-focused policies.
• Vehicle scrappage policy seen aiding replacement demand over time.
• Reduced interest rate costs would support affordability if sustained.
• Continued infrastructure capex in the Union Budget supports CV and tractor demand.

• “Auto OEMs remain optimistic about long-term structural growth drivers, including India’s vast road network, policy measures aimed at reducing supply chain costs, the vehicle scrappage policy, reduced interest rate costs, and continued infrastructure capex outlined in the Union Budget” Axis Securities.

Frequently Asked Questions

Why did the Nifty Auto index cross its 200-day moving average?

The Nifty Auto index moved above its 200-DMA as crude and metal prices fell, retail registrations rose 23 percent, and broad-based gains in large auto and ancillary stocks lifted the index about 2 to 3 percent intraday.

How strong is current auto demand across segments?

VAHAN data shows June registrations up 23 percent, with passenger vehicles up around 30 percent, two-wheelers over 20 percent, and Q4FY26 retail sales rising 23.3 percent YoY across PVs, two-wheelers and commercial vehicles.

What are the key structural growth drivers for the auto sector?

Brokerage commentary highlights premiumisation, electrification, replacement demand, improving rural sentiment, India’s road network, the vehicle scrappage policy, lower borrowing costs, and continued infrastructure capex as the main structural drivers.