AUTO ANCILLARY SECTOR
Market Wrap: Auto, metal stocks lift Sensex up 76 points, Nifty above 24,770 on GST relief, Fed rate cut bets
Indian benchmark indices Sensex and Nifty closed in the green on Monday, lifted by auto and metal shares, as optimism over sweeping GST tax cuts and China’s steel reforms supported sentiment alongside expectations of a Federal Reserve rate cut this month.
50% US tariffs are harsh and unsustainable, change certain: Anand Shah, ICICI Prudential AMC
ICICI Prudential’s Anand Shah expects tariff resolution through dialogue. He advises tilting portfolios to 50% equity allocation given current valuations, and favours consumer services and manufacturing over IT and FMCG as bottom-up stock selection becomes key to generating alpha. By Sameer Bhardwaj.
Auto ancillaries: As dust of EV hype settles, time to bet on select companies? 7 auto ancillary stocks with upside potential of 3 to 30%
One sector that has been out of the news but may make a comeback both to the headlines and the narrative is the auto ancillary sector. Before you go further, it is important to understand that these companies – which could create wealth – fall into four different categories. First, companies that were quick to understand and start work on their EV transformation years back. Second, those which were late to start because their OEM itself was not clear of its EV plans. Third, companies which did not anticipate the speed at which the transition to EV would come. And fourth, those that cannot make the transition because their products are not required in EVs. There is a sub category in this fourth segment: Companies that are making adjustments to stay relevant in the EV space.
Markets stay choppy; Nifty stuck in 24,500–25,000 range
Vinay Rajani observes that the Nifty remains range-bound between 24,500 and 25,000, with volatility dominating market sentiment. While broader indices are under pressure, auto ancillary stocks are showing selective strength, offering short-term trading opportunities.
How 30 multibaggers soared up to 2,660% in a year when Nifty barely moved
Despite a lackluster year for Indian equity markets in 2025, with the Nifty barely budging, several companies defied the trend, delivering exceptional returns. Elitecon International and RRP Semiconductor led the pack with staggering gains, fueled by sector-specific tailwinds and government initiatives. While global trade tensions loomed, strategic stock picking proved rewarding for investors who identified these hidden gems.
Ahead of Market: 10 things that will decide stock market action on Friday
Indian markets ended higher on Thursday as GST reforms supported consumption, while US tariff concerns lingered. Nifty closed at 24,734 and Sensex at 80,718, with active trading in stocks like Ola Electric, Mahindra & Mahindra, Bajaj Finance, and Reliance amid mixed sectoral performance.
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GST reforms very timely; adding more M&M, ancillaries like Uno Minda, cement stocks to portfolio: Gurmeet Chadha
Gurmeet Chadha of Complete Circle Consultants said the GST reforms are a timely boost for demand, compliance, and sentiment. He sees autos, FMCG, and financials as key winners, adding M&M, Uno Minda, and cement stocks to his portfolio while deploying fresh capital.
Think beyond the market’s GST rationalisation theme: 5 large-cap stocks from different sectors with an upside potential of up to 26%
There are short term themes which play in the market and then there are some stories which are long-term and structural in nature. So, if you are looking to invest from a perspective of more than the medium term, which is surely more than two years or so, ensure that, while you allocate some money to the theme of the street, you put a large part of the money in stocks where the operating matrix is such that the runaway of growth is much bigger and larger.
Multibagger or IBC - Part 22: Over Rs. 1,000 crore cash in books. Dry powder ready for EV play and M&As?
Internal combustion technologies face long-term disruption as EV adoption grows, but this auto ancillary player is hedging its bets. While the core business continues to support a deep OEM client base, the company has stepped into electric mobility with motors and controllers. The latest financials show growing revenues, healthy margins and EPS, and strong cash reserves. Diversification across 45+ countries, steady dividend payouts, and disciplined capital allocation provide resilience, making this company’s transition worth tracking in the fast-changing auto ancillary landscape. This series on auto ancillary companies works with the assumption that, from the whole set of auto ancillary companies, some multibagger stocks will emerge. And some companies in this space risk going bankrupt.
Festive season, GST cut seen as key triggers for auto demand
The latest auto sales data paints a mixed picture for the industry. While two-wheelers and tractors continued to deliver strong performances, passenger vehicle sales remained subdued, leaving analysts watching closely for potential demand revival on the back of an anticipated GST cut.
Autos lead the charge as exports outpace domestic demand: Ajay Srivastava
Despite foreign investor outflows and tariff uncertainties weighing on broader markets, autos have emerged as a bright spot in India’s consumption basket. According to market expert Ajay Srivastava, the sector’s strength lies not just in domestic demand but in the robust export story that is unfolding.
Auto ancillary sector delivered 6 multibaggers in 6 months. Can you still catch them?
Axis Securities sees the auto ancillary sector at a pivotal moment, with strong long-term growth driven by exports, premium vehicles, and rural demand recovery. However, short-term challenges like high valuations and global uncertainties may cool the rally. Experts advise caution, highlighting export risks, but remain optimistic about localisation and the EV shift fueling future growth.
GST meeting, expiry shift and auto sales data among 11 factors that’ll steer D-Street this week
Indian benchmark indices closed the holiday-shortened week 1.8% lower amid US tariff worries. On Friday, Nifty declined 0.3%, ending at 24,426.85. The new derivatives series began on a muted note, with the market in a corrective phase and Nifty approaching a key support zone of 24,250–24,350, while banking stocks near critical technical support.
These large- and mid-cap stocks can give more than 24% return in 1 year, according to analysts
As some sectors and industries start to feel the impact of the increased tariffs, the chances are that, in the near term, all the street narrative will centre on this. But make a distinction between reality and narrative. We are not saying that there will be no impact. But the fact is that some amount of exaggeration is to be expected as an industry seeks favours from the government and hopes to extract some relief. So, remain balanced when consuming information. Just to put this in perspective: Does it make sense to sell HDFC Bank because of the tariff? Certainly not. So think rationally before taking any decision.
ETMarkets Smart Talk| Smallcaps in oversold zone; likely to outperform in next 12 months: Naveen Kulkarni
Indian markets are showing positive economic signs. Inflation is easing and rate cuts are expected. Naveen Kulkarni of Axis Securities PMS suggests smallcaps are undervalued. GST reforms could boost consumption. Sectors like autos, hospitality, and BFSI are in focus. Growth stocks may outperform value stocks. Investors are eyeing opportunities beyond largecaps for better returns in the coming months.
Multibagger or IBC - Part 21: Striking when the iron is hot. This auto ancillary's dual story is worth a look
Domestic auto used to dominate revenue at 56%; now it’s down to 40.5%. Mining, railways, and industrial clients are rising. It’s cutting dependence on large clients, funding capacity expansions, and proactively reacting to the EV shift by acquiring a stake in an electric powertrain firm. Safe to say, this forging firm is anything but static. This series on auto ancillary companies works with the assumption that, from the whole set of auto ancillary companies, some multibagger stocks will emerge. And some companies in this space risk going bankrupt.
Tariffs to have lasting impact, align with structural domestic themes and keep an eye on these 3 sectors: Dhananjay Sinha
New US tariffs are poised to deeply impact India's economy, potentially reducing corporate earnings due to elevated tariffs of 20-25%. Dhananjay Sinha of Systematix Group advises investors to focus on domestic themes like consumption, autos, e-commerce, and renewables amid global headwinds. Corporate growth has slowed, and government infrastructure spending may be limited by fiscal constraints.
ETMarkets Smart Talk| Despite FII selling, smart money shifts to small and mid-caps, says Vivek Rajaraman
Foreign investors are selling large-cap Indian stocks. They are reallocating to small and mid-caps. Domestic investors are supporting the market. Sectors like banks, infrastructure, and real estate may benefit from improved ratings. Business confidence is improving. US-Russia relations and GST reforms could influence investment. Consumption and defence sectors are also in focus.
2 top stock recommendations from Rajesh Palviya for next week
Entering the August expiry week, Nifty faces a supply zone at 25,000–25,200, with potential consolidation above 24,800. Bank Nifty appears weaker, needing to surpass 55,500 to avoid further decline. Auto stocks, particularly Hero MotoCorp, Bajaj Auto, and Maruti, show promise amid positive sector trends. Cipla and Maruti are recommended buys, targeting 1,650 and 14,800–15,000 respectively.
Multibagger or IBC - Part 20: An ICE-to-EV pivot is transforming this small-cap auto ancillary company
It is about a company which has changed over time. Incorporated in 1990, the company manufactures cylinder heads and has expanded into ICE, EV, and non-auto components. The EV portfolio now has nearly 90 parts, contributing 19% of revenues in FY25 versus 12% in FY24, while ICE declined from 73% to 69%. Non-auto businesses include defence, energy, agriculture, and aerospace. Recent US tariff hikes on aluminium die-cast parts have affected export demand, though existing agreements pass costs to OEMs. R&D investments reached Rs. 165-170 crore in FY25, with similar plans for FY26. This series on auto ancillary companies works with the assumption that, from the whole set of auto ancillary companies, some multibagger stocks will emerge. And some companies in this space risk going bankrupt.
Focus on core business and ignore the rest: 5 small-caps from different sectors with upside potential of up to 48%
While the proposed GST rationalization has changed sentiment on the street, it has not changed two things. One: High valuations. Two: Possible headwinds some parts of the economy will face if the tariff tantrum continues. In the last three sessions, sentiment has been pretty much opposite to what it was a couple of weeks back when we were in the midst of the Q1 earnings season. Now, this sentiment may change if there is no progress on the India-US trade talks and the additional tariff is imposed on August 27. So, sentiment can sometimes change faster than President Trump’s mood. But businesses have operating matrices that do not change often. And that is what matters in the long run.
Auto stocks rally 25–50% in FY26 so far: Is it time to shift gears?
In FY26 so far, 11 stocks within the BSE Auto Index have delivered double-digit gains, with eight names — such as Hyundai Motor India, Bosch, UNO Minda, Hero MotoCorp, TVS Motor, Ashok Leyland, MRF, and Mahindra & Mahindra — soaring between 25% and 50%.
Focus on growth-oriented companies and stop going by market cap divisions: Alok Agarwal
Alok Agarwal of Alchemy Capital suggests focusing on high-growth sectors like consumer discretionary and chemicals. He is underweight on IT and FMCG. GST rationalization is expected to boost consumption. Electronic manufacturing and hospitals are showing strong growth. He is selectively positive on lenders but favors capital market plays. Midcaps offer better growth prospects than largecaps.
From Paytm to Eternal: 42 stocks India's top performing PMS fund managers are betting on
India’s top-performing PMS funds placed bold bets in July across 42 stocks, spanning fintech giants, healthcare disruptors, agrochemicals, and industrial leaders. With strategies focused on digital disruption, speciality chemicals, and consumption growth, money managers are positioning portfolios for India’s next phase of growth.
These 5 Nifty stocks drove 80% of Q1FY26 earnings growth. Is it time to Buy?
India’s Nifty50 earnings growth in Q1FY26 was heavily concentrated, with Reliance, Airtel, SBI, HDFC Bank, and ICICI Bank driving 77% of incremental gains. Broader sectors showed mixed performance, though analysts remain optimistic on large-cap stocks’ upside potential.
ETMarkets PMS talk | Alternative managers gaining ground: 70% of PMS capital now with non-institutional players, says Manish Bhandari
Manish Bhandari highlights PMS sector growth driven by independent managers, with 70% of institutional capital managed outside traditional institutions. He sees economic benefits in closer India–China–Russia ties, favours infrastructure, cement, healthcare, and selective auto ancillary plays, stressing valuation discipline and diverse strategies.
Multibagger or IBC - Part 19: Steel is Stability. Alloy is the Alpha. This auto ancillary blends both
This auto ancillary company is executing a two-pronged strategy: Go deeper into core components and diversify into adjacent categories. Domestic revenues come entirely from OEMs, while exports have nearly doubled in a year to over Rs. 560 crore. The US and Europe account for 96% of overseas shipments. Its rising share of premium-grade components has boosted profitability metrics across the board, and content per vehicle has tripled. Its dominant position in the EV 2-wheeler segment and strategic partnerships with steel majors position it well for the transition. This series on auto ancillary companies works with the assumption that, from the whole set of auto ancillary companies, some multibagger stocks will emerge. And some companies in this space risk going bankrupt.
Small-cap winners: 12 stocks soar up to 162%, see high YoY profit & sales growth in June quarter
In Q1 FY26, 91 small-cap companies posted over 25% YoY growth in sales and profits. Twelve delivered 80–160% returns, with Paradeep Phosphates, Ravindra Energy, and Sarda Energy emerging as standout multibaggers.
ETMarkets PMS Talk: From PE to public markets — Sonal Minhas on finding the next big winners
Sonal Minhas shares insights on India's investment potential at the APMI conference in Mumbai. He suggests that while India shows economic growth, high nominal growth expectations are unlikely. Minhas recommends focusing on small and mid-cap stocks for alpha generation. He highlights specialty chemicals, MSME-focused banking, and auto ancillary as promising sectors.
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