Auto stocks in top gear despite sales de-growth due to Covid-19

The S&P BSE Auto index has beaten the benchmark index for second straight month in May. This is despite the industry heading for another year of double-digit sales decline this fiscal given the lockdown to contain the Covid-19 pandemic.

In May, the S&P BSE Auto index gained 5.6 per cent as compared to 3.8 per cent decline in the S&P BSE Sensex. In April, too, the index had outperformed the frontline benchmark by a wide margin – rallying 24 per cent as against 14.4 per cent rise in the S&P BSE Sensex. The outperformance, however, comes on the back of 42