India's auto shares extend gains on hopes of demand boost from tax cuts

Samvardhana Motherson International

19/08/2025 07:11

** India's auto index .NIFTYAUTO rises 1.1%, extending Monday's 4.2% surge on hopes of sweeping GST cuts

** Twelve of the 15 constituents advance; auto parts makers Samvardhana Motherson SAMD.NS, Sona BLW SONB.NS gain 4% each

** Tata Motors TAMO.NS jumps 3%, adding to Monday's ~2% rise

** Multiple brokerages say GST cuts could lift demand for vehicle and parts makers

** Motilal Oswal calls the proposed rate cut a "much-needed booster dose" for the sector

** Brokerage estimates vehicle prices may fall 7% if GST on autos is cut to 18% from 28%, sparking festive-season demand

** Maruti Suzuki MRTI.NS, Hyundai Motor India HYUN.NS and Mahindra & Mahindra MAHM.NS are Motilal's top OEM picks

** Endurance Tech ENDU.NS, SAMD and Happy Forgings HAPY.NS its top ancillary plays

** MRTI and MAHM, which gained 8.8% and 3.6% on Monday, flat

** HYUN jumps 3.1% on top of previous session's 8.2% rise

** Year-to-date, auto index up 11.2%, outpacing benchmark Nifty 50's .NSEI 5.5% rise

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))