Nifty Auto Surges Nearly 3%, Auto Stocks Zoom On Crude Oil Price Fall

Automobile stocks rallied sharply on Thursday, with the Nifty Auto index climbing 2.9%, or 761 points, to emerge as the top-performing sectoral index on the National Stock Exchange (NSE).

The rally was supported by falling global crude oil prices and expectations of possible changes to US trade tariffs following the midterm elections.

The auto index outperformed the benchmark Nifty 50, which gained 1.7% in morning trade.

Ashok Leyland topped the sectoral gainers, jumping 9% to Rs168, while Maruti Suzuki advanced 4.7% to Rs12,556.

Tata Motors Passenger Vehicles (TMPV) rose 4.5% to Rs291, and Mahindra & Mahindra climbed 3.4% to Rs3,063.

The three passenger vehicle manufacturers also featured among the Nifty 50's leading gainers.

Hyundai Motor India gained 3.3% to Rs2,132, while Samvardhana Motherson International advanced 3.1% to Rs165.

Eicher Motors and TVS Motor Company rose 2.5% each to Rs7,610 and Rs4,440, respectively.

Uno Minda increased 2.4% to Rs1,226, while Bharat Forge, Hero MotoCorp and Bosch gained between 1.5% and 2%.

Brent crude futures fell 1.03% to $93.65 a barrel in early Asian trading after plunging nearly 9% on Wednesday.

US West Texas Intermediate (WTI) futures declined 1.29% to $86.98, while Brent's weekly losses approached 20%.

The decline followed reported Republican setbacks in the US midterm elections, raising expectations of reduced military escalation against Iran.

Lower oil prices could ease inflation, transportation expenses and certain manufacturing costs, potentially supporting automobile demand.

Investors also anticipated possible adjustments to US tariffs following the election results.

The buying extended across Asian automobile markets as investors shifted towards traditional industries from technology stocks.

Japanese automakers Toyota Motor and Honda Motor gained approximately 5% each, reflecting stronger regional interest in automobile shares.