Analysts ride two-wheeler stocks for gains as India eases Covid-19 lockdown

Expected demand pick-up in tier-II and tier-III cities as well as preference for personal mobility amid the Covid-19 health concerns are the top two factors that would drive the demand, analysts say.

As India moves from ‘Lockdown 5.0’ to ‘Unlock 1.0’, investors are placing bets on rural India to lead the economic growth. For analysts, two-wheeler (2W) stocks are emerging as the top investment pick in the current market scenario within the auto sector that has outperformed the frontline index for two consecutive months now. Expected demand pick-up in tier-II and tier-III cities as well as preference for personal mobility amid the Covid-19 health concerns are the top two factors that would drive the demand, they say.

“Covid-19 should impact the rural economy relatively less than the urban economy as the spread is