Nifty Auto soars 75% in FY24; what lies ahead for the sector? Here's what experts predict
Read here: Tata Motors vs M&M: Which auto major should you pick for the long term? The Nifty Auto index has surged 75 percent in the last 1 year and almost 16 percent in 2024 YTD. In comparison, the benchmark Nifty has advanced over 29 percent in the last 1 year and 3.5 percent in 2024 YTD. The auto index rose 5 percent in March, extending gains for the 5th straight month since November 2023.
In this period, it rallied 34.5 percent. In 2024, it has jumped 3.3 percent in January and 6.2 percent in February. In the last one year, all constituents of the Nifty Auto index were positive with 4 giving multibagger returns to their investors.
Tata Motors soared the most in FY24, up 139.5 percent, followed by Bajaj Auto, up 135 percent, TVS Motor, up 101 percent, and Hero Moto, up 100 percent. Apart from these, Samvardhana Motherson, Sona BLW, M&M, MRF, Bosch, and Maruti Suzuki also rallied over 50 percent each. Meanwhile, Bharat Forge, TI India, Eicher Motors, Ashok Leyland, and Balkrishna Industries also advanced between 18 and 49 percent.
With such robust performances by the auto stocks in FY24, will FY25 follow a similar trend? Between passenger vehicles (PVs), commercial vehicles (CVs), and two-wheelers (2W), which segment will lead? Here's what experts believe - The trend is expected to continue in the auto space owing to favourable market demand and the anticipated rate cuts. Technically, the two major companies in the space, Tata Motors and Maruti, have just begun and have huge potential for further rally. However, the auto index has run up too fast too soon, so it may pause for a while before starting the next leg of the rally.
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