As auto manufacturers reopened some production units, auto stocks were seen trading in the green. However, the key challenge that the automotive industry faces is getting the sales numbers up that were already not going through pleasant times in the pre-coronavirus world. As a large number of tier-1 cities, that fall in the red zone, accounted for one-third of the overall demand of the auto sector, the sales figures are set to stay muted for the industry. ICICI Securities has reduced its volume growth estimates for the entire sector. ‘‘We model PV segment decline of ~20% (from 2% earlier) and 2W segment decline of ~16% (from 2%),’’ said ICICI Securities. With this, the brokerage and research firm has a ‘buy’ call on three auto stocks with an upside of as much as 37%.
Nifty50 closed higher at 8879.10 level, +55.85 points, or +0.63 per cent. Nifty Support : 8800 and 8750 Resistance : 8950 and 9050.
