Latest news with #NiftyAuto
New Indian Express
5 hours ago
- Business
- New Indian Express
Indian markets close higher on global cues and Q1 earnings; rupee ends weaker
CHENNAI: Indian stock markets ended higher on Wednesday, July 23, tracking strength in global equities and positive sentiment around ongoing corporate earnings for the June quarter (Q1FY26). The BSE Sensex rose 539.83 points, or 0.66%, to close at 82,726.64, while the NSE Nifty50 gained 159 points, or 0.63%, to settle at 25,219.90. Markets witnessed broad-based buying, led by gains in financials, autos, and metal stocks. Investor confidence was further supported by upbeat earnings from large-cap companies. Sectoral performance was largely positive on Wednesday with Nifty Auto advanced 0.85%, Nifty Financial Services (up 0.76%) Nifty Bank (up 0.80%), and Nifty Metal (up 0.48%). However, Nifty Realty was the notable laggard --down 2.6%. In the broader markets, the Nifty MidCap 100 index gained 0.34%, while the Nifty SmallCap 100 closed flat. On the earnings front, several key companies reported results: Infosys posted a 9% year-on-year rise in net profit to ₹6,921 crore, with revenue up 8% to ₹42,279 crore. JSW Steel reported a 158% jump in consolidated net profit to ₹2,184 crore. Indian Overseas Bank recorded a 75.6% rise in net profit to ₹1,111 crore. Tech Mahindra saw a 34% increase in net profit despite some pressure on revenue from the Americas. Jio Financial Services reported a 3.8% rise in net profit, with a 47% surge in revenue year-on-year. Rupee The Indian rupee ended slightly weaker at ₹86.41 against the US dollar, compared to the previous close of ₹86.36. Market sentiment was also influenced by global developments, with investors closely tracking geopolitical cues and trade policy signals, including the potential impact of proposed US tariffs on key sectors. With the earnings season in full swing, market participants are expected to remain stock-specific in the near term, while global trends and macroeconomic data continue to guide broader direction, say analysts.
Mint
8 hours ago
- Automotive
- Mint
Auto stocks are surging—even as sales sputter and supply risks rise
Mumbai: India's auto and auto ancillary stocks are on a tear—even as sales sputter and supply chain clouds gather. Some lesser-known auto component makers have posted triple-digit stock market gains in the past three months, eclipsing marquee vehicle manufacturers and defying a cautious outlook for the industry. Shares of Frontier Springs have soared 151%, Lumax Auto Technologies is up 110%, and Kinetic Engineering has gained 90%, outpacing commercial vehicle makers Force Motors's 85% and SML Isuzu's 78% gains. One of the key drivers behind the rally, analysts say, is liquidity. Flush markets and improved risk appetite have lifted not just autos, but other sectors as well. Hopes of a festive season demand rebound, coupled with a potential trickle-down from banks following the Reserve Bank of India's 50-basis-point rate cut, have added to the optimism. Still, it hasn't been a smooth ride for all auto and auto ancillary stocks. Containe Technologies (-28%), Ola Electric (-23%), Atul Auto (-9%), GNA Axles (-11%), and JBM Auto (-9%) have seen corrections over the past three months, while the Nifty Auto index has risen 7.2%. Hyundai Motor India fared better with 26% gains in the past three months, followed by Mahindra and Mahindra (17%), TVS Motor Co. (4%), Bajaj Auto (2%), and Maruti Suzuki India (6%). Some market participants caution that if the expected rate cut transmission to borrowers or retail loan growth fails to play out, auto stocks could be in for a sharp pullback. The current surge is drawing attention because it runs counter to the broader outlook: domestic vehicle demand remains muted, supply chain risks from a rare-earth-magnet shortage are mounting, and analysts warn of earnings pressure in the September quarter if the disruption persists. While some investors see the issue as temporary, others worry the rally may be running ahead of fundamentals. A 15 July report by BNP Paribas showed mutual funds slightly trimmed their overweight position in the auto sector—to 7.7% in June from 8.0% in May. Foreign institutional investor exposure dipped to 6.9% from 7.0% in the same period—but market experts explained that this doesn't necessarily mean FIIs exited auto stocks, and could reflect allocations to other sectors instead. Foreign portfolio investors, meanwhile, pumped in $553 million in auto stocks in June, up from just $11 million in May, according to NSDL data. FPIs were net sellers in the auto sector for nine straight months, from August 2024 through April 2025. Supply chain concerns Rare earth magnet supply remains a key concern. These magnets—critical for both electric vehicles (EV) and internal combustion drivetrain components—are used in electric motors, oxygen sensors, lasers, and a wide array of industrial and medical applications. China dominates this supply chain, and its recent decision to restrict exports of certain rare earth materials has raised alarm across global auto markets. In June, Maruti Suzuki and Bajaj Auto said they had sufficient magnet inventory through July. Kumar Rakesh, analyst at BNP Paribas, said there is no immediate earnings risk from the rare earth crisis, as most companies are believed to have sufficient inventory through July. 'Investors largely expect the issue to be resolved by then," he said, adding that if new model launches get delayed, that could be a warning sign. But concerns persist. On 11 June, Reuters reported that Maruti had slashed near-term production targets for its debut EV, the e-Vitara, by two-thirds due to magnet shortages. Rakesh added that the pressure may not be limited to EVs. 'Even ICE vehicles could feel some pressure," he said, referring to conventional vehicles run on internal combustion engines. Companies are already exploring alternative sourcing options and diversifying supply chains, Rakesh added. 'For now, it looks more like a short-term disruption than a long-term threat." Sourcing under scrutiny In an earnings call on 30 April, Vivek Vikram Singh, managing director and group chief executive of SONA BLW Precision Forgings, flagged near-term supply chain risks. 'In India, while we are working with the industry and the government and the Chinese embassy to speed up the process of importing magnets from China, we're also evaluating alternate materials, including Ferrite, different grades of magnets, different technologies, as well as different supply sources," he said. Singh warned the disruption could hit global auto production in the short term. 'The threat of a rare earth minerals shortage is real, and the impact could be visible in the near term, especially for EVs," said Rajat Chandak, senior fund manager at ICICI Prudential Mutual Fund. He added that alternate sourcing arrangements are being explored, but scaling them will require government support. 'One option available to OEMs (original equipment manufacturers) is to import the entire motor, rather than just the magnets or rare earth minerals," he said. TVS Motor Co., for a second month in a row, flagged a similar concern in its June update, noting that 'magnet availability remains a challenge in the short to medium term". Its EV sales dropped to 14,400 units in June from 27,976 in May. Demand remains sluggish Soft domestic demand is adding to the auto sector's complexity. Growth in FY26 is expected to remain in low single digits across most auto segments, said Arun Agarwal, vice president–fundamental research, at Kotak Securities. Tractors may hold up slightly better than passenger vehicles, but overall momentum is weak, he said. Sales data for the April-June quarter released by the Society of Indian Automobile Manufacturers (Siam) earlier this month showed mixed trends. Passenger vehicle sales crossed the 1 million mark, reaching 1.01 million units, but due to weaker sales toward the end of the quarter volumes declined 1.4% year-on-year. Two-wheeler sales fell 6.2% to 4.67 million units, largely due to inventory corrections across the industry. Three-wheeler sales in the financial first quarter hit a record 165,000 units, up 0.1% year-on-year, driven by the passenger carrier segment. Commercial vehicle sales declined marginally by 0.6% to 223,000 units. 'Looking ahead to Q2, the overall industry outlook remains cautiously optimistic," Siam said. While challenges may persist in the near term, a few positive indicators could support a recovery: the upcoming festive season may lift demand for passenger vehicles and two-wheelers; above-normal monsoons could boost rural income and entry-level vehicle sales; and the Reserve Bank of India's 100-basis-point (bps) rate cuts this year could eventually improve affordability and consumer sentiment. 'However, the supply-side challenges—especially the recent export licensing requirement from China on rare earth magnets—have been a concern for OEMs of all categories," Siam said. Agarwal cautioned that prolonged softness could force automakers to resort to discounting, putting margins under pressure. 'Low volumes hurt operating leverage, putting further pressure on profitability," he said. Earnings on watch Kotak Institutional Equities expects auto companies it covers to report 1% revenue growth for the first quarter, supported by mid-single-digit growth in vehicles and price realization gains, partly offset by deeper discounts and weak global sales. 'We expect Ebitda margins to decline by 210 bps (year-on-year), driven by higher discounts, commodity headwinds (tires), higher advertisement spends and tariff-related hits," the brokerage said in a 2 July report. For auto ancillary companies, the revenue outlook appears slightly stronger. Kotak expects 6.6% year-on-year revenue growth in the first quarter, driven by low- to mid-single-digit growth in vehicles and mid- to high-single-digit gains in replacement segments like tyres and bearings. Tractor-linked volumes are expected to rise in the low teens. However, even ancillaries aren't immune to pressures. Kotak expects Ebitda margins to decline 60 basis points year-on-year due to weaker product mix (batteries), raw material headwinds (tires), and a weaker export mix. The brokerage added that companies with exposure to the global auto market are likely to report weak numbers, given decline in production volumes, especially in the US. Auto makers will begin reporting their June-quarter earnings on 23 July, with Force Motors scheduled to announce first. Investors will be watching closely to see whether earnings justify the recent stock gains—or reveal signs of overreach.
Business Standard
8 hours ago
- Automotive
- Business Standard
Nifty above 25,100 level; auto shares jump
The key equity indices continued to trade with minor gains in morning trade as investors assessed stock-specific triggers amid Q1 earnings announcements. The Nifty traded above the 25,100 level. Auto shares gained after declining in the past trading session.. At 10:25 AM ST, the barometer index, the S&P BSE Sensex advanced 162.30 points or 0.20% to 82,350.08. The Nifty 50 index rose 46.90 points or 0.19% to 25,107.90. In the broader market, the S&P BSE Mid-Cap index shed 0.26% and the S&P BSE Small-Cap index fell 0.18%. The market breadth was negative. On the BSE, 1,492 shares rose and 1,865 shares fell. A total of 166 shares were unchanged. Buzzing Index: The Nifty Auto index added 0.98% to 24,111. The index declined 0.74% in the past trading session. Tata Motors (up 2.24%), Maruti Suzuki India (up 1.53%), TVS Motor Company (up 1.1%), Bajaj Auto (up 1.02%) ,Mahindra & Mahindra (up 1.01%), Bharat Forge (up 0.76%), Hero MotoCorp (up 0.63%), MRF (up 0.51%), Exide Industries (up 0.39%) and Eicher Motors (up 0.17%). Result today: Infosys (up 0.49%), Coforge (down 0.41%), Dr Reddy's Laboratories(down 0.11%), Tata Consumer Products(down 0.84%), Aditya Birla Real Estate(down 1.19%), Bajaj Housing Finance(up 0.91%), Bikaji Foods International(up 0.39%), CMS Info Systems(down 1.46%), Force Motors(down 0.31%), Maharashtra Scooters(down 0.90%), MAS Financial Services(down 0.91%), Mahindra Holidays & Resorts India(up 0.75%), Persistent Systems(down 0.74%) will announce their result later today. Stocks in Spotlight: Indian Railway Finance Corporation (IRFC) rallied 2.60%after the companys net profit rose by 10.70% to Rs 1,745.69 crore in Q1 FY26 as against Rs 1,576.83 crore posted in Q1 FY25. Inox Wind (IWL) shed 0.30%. The company said that it has secured a 51 MW order from First Energy (FEPL) for the supply of its 3 MW class turbines, with the contract also encompassing limited scope EPC and multi-year post-commissioning O&M services.
Economic Times
9 hours ago
- Automotive
- Economic Times
Tata Motors, Maruti shares advance up to 3% as US-Japan trade deal revives hopes for India–US pact
Tata Motors, Maruti Suzuki, and Mahindra & Mahindra shares rose as much as 3% on Wednesday, buoyed by a global surge in auto stocks after the United States and Japan signed a high-stakes trade agreement, fuelling expectations of progress on a similar deal between India and the US. ADVERTISEMENT Tata Motors gained 2.9% to Rs 692.95 on the BSE, while Maruti Suzuki rose 1.7% to Rs 12,715.05. Mahindra & Mahindra advanced 1.3%, touching an intraday high of Rs 3,302.90. The Nifty Auto index rose as much as 1% during the session, with gains seen across Bajaj Auto, TVS Motor, and Hero MotoCorp. The rally was part of a broader uptick in Asian auto stocks following the announcement of a U.S.–Japan deal that slashes tariffs on Japanese car exports to the US from 25% to 15%. Japanese Prime Minister Shigeru Ishiba said the U.S. had also agreed not to cap auto imports, while U.S. President Donald Trump, posting on Truth Social, highlighted $550 billion in planned Japanese investments into the U.S. and improved market access for American rice, cars, and farm automakers surged on the Tokyo Stock Exchange, with Toyota Motor Corp jumping 15% and Honda Motor Co rising more than 11%. The Nikkei 225 index climbed over 3% in afternoon trade. Although a U.S.–India trade deal has faced delays, the latest developments have revived investor expectations. Traders are now betting that India could benefit from the White House's apparent push to fast-track multiple trade agreements before the August 1 tariff deadline. ADVERTISEMENT Indian automakers, many of which have sizeable global footprints and rely on sentiment-driven demand cycles, stand to benefit if tariffs ease or trade barriers fall. The Nifty Auto index has now gained more than 4% since the beginning of the read | Aditya Birla Real Estate shares down 32% from peak. Can the stock reclaim Rs 2,400 post Q1 results?(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
10 hours ago
- Automotive
- Time of India
Tata Motors, Maruti shares advance up to 3% as US-Japan trade deal revives hopes for India–US pact
Tata Motors , Maruti Suzuki , and Mahindra & Mahindra shares rose as much as 3% on Wednesday, buoyed by a global surge in auto stocks after the United States and Japan signed a high-stakes trade agreement, fuelling expectations of progress on a similar deal between India and the US. Tata Motors gained 2.9% to Rs 692.95 on the BSE, while Maruti Suzuki rose 1.7% to Rs 12,715.05. Mahindra & Mahindra advanced 1.3%, touching an intraday high of Rs 3,302.90. The Nifty Auto index rose as much as 1% during the session, with gains seen across Bajaj Auto, TVS Motor, and Hero MotoCorp. Explore courses from Top Institutes in Please select course: Select a Course Category Finance Data Science Data Science Product Management Project Management MCA CXO Degree Technology Artificial Intelligence Operations Management Management Leadership Digital Marketing others Public Policy healthcare Healthcare PGDM Others MBA Data Analytics Cybersecurity Design Thinking Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Fintech & Blockchain India Starts on undefined Get Details Skills you'll gain: Duration: 9 Months IIM Calcutta SEPO - IIMC CFO India Starts on undefined Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Ichhapur: 1 Trick to Reduce Belly Fat? Home Fitness Hack Shop Now Undo The rally was part of a broader uptick in Asian auto stocks following the announcement of a U.S.–Japan deal that slashes tariffs on Japanese car exports to the US from 25% to 15%. Japanese Prime Minister Shigeru Ishiba said the U.S. had also agreed not to cap auto imports, while U.S. President Donald Trump, posting on Truth Social, highlighted $550 billion in planned Japanese investments into the U.S. and improved market access for American rice, cars, and farm goods. Japanese automakers surged on the Tokyo Stock Exchange, with Toyota Motor Corp jumping 15% and Honda Motor Co rising more than 11%. The Nikkei 225 index climbed over 3% in afternoon trade. Live Events India deal hopes back in focus Although a U.S.–India trade deal has faced delays, the latest developments have revived investor expectations. Traders are now betting that India could benefit from the White House's apparent push to fast-track multiple trade agreements before the August 1 tariff deadline. Indian automakers, many of which have sizeable global footprints and rely on sentiment-driven demand cycles, stand to benefit if tariffs ease or trade barriers fall. The Nifty Auto index has now gained more than 4% since the beginning of the year. Also read | Aditya Birla Real Estate shares down 32% from peak. Can the stock reclaim Rs 2,400 post Q1 results?
