Auto stocks rally up to 16% in July; more steam left, say experts

Analysts believe the strong sales momentum could continue going ahead

Auto and auto ancillary stocks have caught investor's attention offlate, with the Nifty Auto index ruling at its all-time high levels. The optimism is partly on account of healthy sales in July, allaying concerns over a likely fall in demand due to transition to the GST regime.

Leader in passenger car segment, Maruti Suzuki, recorded 22% sales growth in the July 2017, while others too reported better-than-expected numbers as automakers restocked inventories at dealerships ahead of early festive season this year. CLICK HERE FOR FULL REPORT

Analysts tracking the sector say given the lower fuel prices and drop in