Auto component exporters may get benefit from US-China trade deal

Another trigger for the rally is the expectation of an improvement in the European auto market

Stocks of auto component companies, which derive a significant portion of their revenues from overseas markets, have been outperforming domestic peers over the last three weeks. Motherson Sumi, Bharat Forge, and Balkrishna Industries are some of the stocks which have gained up to 14 per cent. Among auto companies, Tata Motors, India's major automobile company with big exposure to global markets, too, saw a sharp rally of about 18 per cent. 

One of the key reasons for the rally has been the recent approval of the US-China phase 1 trade deal by American President Donald Trump. This is a relief to