Nifty Auto index stocks: Festive season is a test for EV inflection point

One more reason why the auto index is important to look at is the fact that while it is not an absolutely correct substitute for the transportation index available in some western countries, an auto index is something which can give an advance indication of how things are happening on ground in the economy.

If one has to go by recent indications from management of different auto companies, the mood in the industry is positive about the forthcoming festive season. For the auto industry, headwinds like rising input cost, stagnant demand are becoming things of the past for the majority of them. Now if the festive season goes well, then auto stocks might see another push. Though if the metal prices start to rise some companies might face minor issues with their margins. So while being bullish, being watchful.

As the headwind for the auto sector starts to slow and the nifty auto index continues to outperform some of the other sectoral indices, we take a look at what analysts' views are on segments and sub-segments of the auto industry. Stock Reports Plus, powered by Refinitiv, is a comprehensive research report that evaluates five key components of 4,000+ listed stocks - earnings, fundamentals, relative valuation, risk and price momentum to generate standardized scores.

After facing rising input costs and supply chain disruption, the Macro environment in which auto ancillaries companies operate have turned favourable after a long period of time. Sometimes it is LCV and HCV which drives the demand, at other point time, better four and two wheeler numbers are pushing the demand up for auto ancillary companies, some of which are changing their business model to stay relevant in times of EV. We take a look at companies where analysts are projecting further upside in the next 12 months. The list is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.

Luxury goods demand is also emerging from cities beyond the top metros

The season also saw a shift in fortunes for general trade, which boosted its market share to 35-40% from about 32% the year before, while online channels remained flat. That said, analysts continue to predict a 1-2% on-year annual decline in shipments in 2023 despite the notable surge in sales during the festive season.

India Business News: Mumbai/New Delhi: It’s that time of the year when consumers loosen their purse strings to welcome abundance into their homes.

The first phase accounts for 40-50% of total festive sales. The second phase begins a week before Diwali, which is on November 12 this year. This surge reflects a revival in consumer sentiment, which has been subdued for over a year.