Festive Fervour Drives Auto Stocks: Maruti Hits Record High, Hyundai Shows Rally Signs

Indian auto stocks advanced in a weak market on Tuesday, with 13 of the 15 constituents of the Nifty Auto Index trading in the green.

The Nifty Auto Index was up 0.9% in mid-day trade, having gained as much as 2.1% earlier in the session.

GST, Navratri Drive Sales

Maruti Suzuki

Maruti Suzuki India, India's largest carmaker, reported that retail sales had crossed 25,000 units by late Monday evening, with expectations to exceed 30,000 units by the end of the day. The company reportedly received around 80,000 customer enquiries, while bookings for small cars surged 50% following GST-related price reductions.

This marked Maruti's strongest start to Navratri, the onset of a Hindu festival, in 35 years.

Following the company's price reductions on September 18, due to the GST revision, it has recorded 75,000 bookings, with about 15,000 new bookings daily, 50% higher than usual. Demand for small cars was robust, and some variants may run out of stock, according to reports.

Maruti Suzuki shares climbed 3.2% to a record high of ₹16,325 on Tuesday. Year-to-date, the stock has increased in value by 48%.

At the time of writing, Maruti was a top 10 trending stock on Stocktwits, though retail sentiment remained 'bearish'. It was 'bullish' a month back.

Tata Motors

The carmaker delivered 10,000 vehicles on the first day of Navratri and received over 25,000 inquiries.

In other news, its British unit, Jaguar Land Rover, has extended its production pause till October 1. 

The stock climbed over 1.5% intraday. Its YTD losses are at about 5%.

Retail sentiment remained 'bearish'. It was 'neutral' a week ago. 

Hyundai Motor

Hyundai Motor India also saw strong sales, recording approximately 11,000 dealer billings on the first day of Navratri, its highest single-day performance in five years.

COO Tarun Garg attributed the surge to festive sentiment and momentum from GST 2.0 reforms, noting that the company expects sustained demand throughout the festival period.

Hyundai's shares had pared early gains to trade 0.1% lower in early trade. The stock had climbed as much as 4.5%.

However, retail sentiment picked up a notch. It turned 'extremely bullish' from 'bullish' a session earlier, amid 'high' chatter on Stocktwits.

The stock has gained more than 50% so far this year.

Technical Take

In June, Hyundai stock broke above this resistance and began a short-term uptrend, forming higher highs and higher lows, noted SEBI-registered analyst Prabhat Mittal.

The stock is currently trading above its 20-day, 50-day, and 100-day moving averages, indicating positive momentum. The moving average convergence/divergence (MACD) also indicates a buy signal, supporting the bullish outlook.

However, after profit booking on September 22, Mittal suggested it is better to wait for dips before initiating new positions.

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