On Thursday, the Nifty Auto index experienced a significant rise of nearly 3%, reaching 27,533.20 on the National Stock Exchange (NSE). This marks the fourth consecutive day of gains for the index, which has surged 16% since the beginning of April 2026. Despite being 5.6% below its all-time high of 29,179.10 recorded on January 5, 2026, the index remains the top performer among sectoral indices, outperforming the Nifty 50 index, which rose only 0.11%. Key stocks such as Bharat Forge, Hero MotoCorp, and Bosch saw increases of 4% each, while several others, including Mahindra & Mahindra and Ashok Leyland, gained between 2% and 3%.

The positive momentum in the auto sector is attributed to steady wholesale sales, particularly in the passenger vehicle and tractor segments, alongside robust retail registrations that grew 13% year-on-year. Analysts from ICICI Securities have noted a selective growth outlook for FY27, with expectations that two-wheelers and commercial vehicles will lead the growth, while passenger vehicles may normalize due to a high base effect. However, potential headwinds from geopolitical uncertainties could impact growth in the coming quarters. Despite these challenges, supportive government policies and a shift towards electrification are expected to bolster the sector's performance.