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Buoyed by the sales momentum in January, the auto stocks have gained over 2 per cent on Monday's trade.
The Nifty Auto index was trading 2.51 per cent higher at 10,992.90 around 11:25 am.
The sectoral rise was led by Mahindra & Mahindra, up 7.09 per cent, followed by Exide Industries (up 6.33 per cent), Amaraja Batteries (up 4.07 per cent), Motherson Sumi (up 2.78 per cent), Tata Motors (up 2.71 per cent), Ashok Leyland (up 2.58 per cent) and TVS Motors (up 1.93 per cent).
January sales
Earlier, the domestic automobile dispatches (wholesales) in January sustained demand across segments, mostly due to the new launches, and companies are expected to continue the momentum in the current quarter.
Similarly, the incremental volumes are expected for the two-wheeler segment because of the low base effect to remain in play till the end of the fourth quarter and continue into the first quarter of the next fiscal year.
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But increase in Customs duty on auto parts raises concernsThe market leader Hero MotoCorp reported a decline of 4 per cent YoY in its sales to 4,67,776 units against 4,88,069 units in January 2020.
Benchmark NSE Nifty50 index was trading higher 183 points at 15,107 while the BSE Sensex was up 673 points at 51,391.
Among the 50 stocks in the Nifty index, 44 were trading in the green, while six were in the red.
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