Tata Motors, M&M to Bajaj Auto: Why are auto stocks rising after India's stellar GDP data print?
Stock market today: After the announcement of India's stellar gross domestic product (GDP) for the third quarter of the current fiscal year, auto stocks in India are witnessing strong demand since early morning deals on Friday. Tata Motors shares are up over 2 per cent, Mahindra & Mahindra (M&M) share price is up by around one per cent, Bajaj Auto share price gained to the tune of 2 per cent, Hero MotoCorp shares gained around 1.50 per cent, whereas Maruti Suzuki and Ashok Leyland shares gained nearly one per cent in early morning deals on Friday. According to stock market experts, auto stocks are in an uptrend today as the real GDP of India for Q3FY24 has come to 8.4 percent, which is much better than expected.
Moreover, they said that the Indian GDP has been continuously giving positive signals and healthy conditions for the national economy. They said that a healthy economy means better purchasing capacity, which powers auto, banking, and real estate. On why they are bullish on auto, realty and banking segments in the strong Indian economy, they said that higher income leads to higher spending in residential real estate, cars, and bikes.
On auto stocks to buy today, they advised long-term investors to buy shares of M&M, Tata Motors, Maruti Suzuki India, Bajaj Auto, and Hero MotoCorp. Highlighting the key takeaways from India's GDP data for Q3FY24, Nikhil Gupta, Chief Economist at Motilal Oswal, said, "In another pleasant surprise, India's real GDP grew 8.4% YoY in 3QFY24, compared to the market (and our) forecast of 6.5-7%. Further, the last two quarters' growth was also revised up to 8.1% (from 7.7% earlier).
Read more on livemint.com
