Auto stocks buck downbeat market trend in May; charts suggest further gains

Given the current market volatility, auto stocks seem to be a better bet for long side trades. Select stocks like M&M and TVS Motor can rally up to another 12 per cent.

Shares of automobile companies are likely to be in focus, as the sector can be an indirect beneficiary of the unexpected shap cut in excise duty on petrol and diesel, as well as the export levy on steel and related raw materials.
 

Overall May 2022 so far has been a good month for the auto sector, with stocks outperforming the benchmark indices by a wide margin. So far this month, the benchmark indices, the BSE Sensex and Nifty, have seen a fall of around 5 per cent each; whereas select auto stocks like TVS Motor Company and Hero MotoCorp have