Auto stocks see sharp recovery, index gains over 70% after falling in March

Domestic institutional investors have raised their weights to the sector

Auto stocks, which had come under heavy selling pressure during the Covid-19-induced lockdown, have seen sharp recovery with the auto index gaining over 70 per cent since March lows. In comparison, the frontline market index Nifty has recovered 49 per cent since the March 23 lows.

Auto ancillary stocks and commercial vehicle (CV) players have been among the top gainers. Motherson Sumi (120 per cent), Mahindra & Mahindra (107.7 per cent), Balkrishna Industries (95.3 per cent), Ashok Leyland (92.6 per cent), and Amar Raja Batteries (90.2 per cent), have been among the highest gainers in the BSE auto index.

Experts say the