Mumbai . After a long decline, the stock market is now once again seen in the green mark. After the breakout in the BSE Auto index last week, most auto majors have been rallying this week. In the last 5 sessions, the share price of Tata Motors has risen over 6 per cent while the shares of Maruti Suzuki have gained over 8 per cent in this period. The share price of Mahindra & Mahindra has gained over 4 per cent in the last 5 sessions. At the same time, the share price of TVS Motor has increased by about 4.50 percent.
According to stock market experts, after the breakout in the BSE Auto Index, most of the auto stocks have shown an uptrend. This is one of the main reasons for the rise in auto stocks. He said auto stocks are available at attractive valuations after the recent selloff due to the volatility in Russia-Ukraine.
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The weakness in the markets in recent sessions has mainly been on account of weakness in the US economy. Hence, once the markets rebound, auto stocks will be one of the bullish sectors in the Indian stock market.
auto sector demand good
According to market experts, the fundamentals of auto stocks are looking strong at this time. There is a huge increase in demand. On the other hand, when the market showed a boom after Corona, most auto stocks were not included in it because auto stocks have a direct relationship with the national economy. After the reversal of the market, there is a lot of volatility and fall in the Indian stock market. These are volatile due to foreign triggers like Russo-Ukraine war, weakness in US economy etc.
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improve the situation
In the current scenario, there is nothing wrong with the Indian economy as the rupee was slipping due to the rise in crude oil prices. Now, crude oil is coming down from its recent highs. Hence, once in a trend reversal, auto stocks will be one of the key sectors. According to experts, Tata Motor, Maruti Suzuki, Mahindra & Mahindra, TVS Motor are seeing such stocks in the auto sector which can be bought now. They are looking good in terms of both near term and long term.
Tags: Mahindra and Mahindra, Maruti Suzuki, Tata Motors
FIRST PUBLISHED : June 24, 2022, 10:14 IST