The Indian stock market following its global peers are trading on a positive note with Sensex is up 537.10 points or 1.79 percent at 30566.08, while the Nifty jumped 154.95 points or 1.76 percent at 8978.20.
The auto index was up 2 percent and is the outperforming sector led by Tata Motors which jumped over 5 percent. The stock was one of the most active stocks on NSE in terms of volumes with 1,95,60,073 being traded.
The other gainers included Maruti Suzuki up over 3 percent. The company informed the exchanges that it has delivered over 5,000 cars in the past few days with over 1,350 Maruti Suzuki showrooms and over 300 True Value outlets operational.
Ashok Leyland, Bharat Forge and Eicher Motors were the other gainers in the auto index.
According to SIAM estimates, if India’s GDP growth for FY21 falls below 1 percent, passenger vehicle sales will likely decline by 20-24 percent while two-wheeler sales may drop by 27-30 percent. In the case of commercial vehicles, the drop could be as much as 32-35 percent while three-wheeler sales may decline by 28 percent.
Motilal Oswal also said valuations appeared attractive across companies but given the uncertain macro environment and threat of a possible prolonged impact of the coronavirus, it preferred stocks offering higher visibility of demand recovery, better competitive positioning, scope of higher operating leverage and strong balance sheet.
Eicher Motors and Maruti Suzuki are its top largecap picks, among mid-caps, it preferred Endurance Technologies.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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