Shares of automakers rose on November 2 after strong October sales underscored resilient festive demand, with analysts favouring two-wheeler and commercial vehicle makers for their greater ability to pass on rising input costs.
At 9:55 am on November 2, the Nifty Auto index rose 1.07% to 25,694.6 points.
Shares of Maruti Suzuki climbed 3% to Rs 11,744 apiece, Ashok Leyland gained 2.6% to Rs 148.57 apiece, and Tata Motors Passenger Vehicles advanced 2.8% to Rs 272.8 apiece. TVS Motor rose 0.77% to Rs 4,227.5 apiece.
The sales figures suggest demand remained resilient despite a high base from last year's GST-cut-driven surge, though analysts said the bigger test will come after the festive season, when rising input costs and supply constraints could weigh on growth.
Jefferies said two-wheeler demand stayed strong and passenger vehicle sales gained momentum despite the tough comparison.