BSE Auto index hits over 3-mth high; M&M at record high, Tata Motors up 3%

Analysts at Emkay Global Financial Services retain their positive view on the auto sector, underpinned by expectations of a cyclical upturn in the next three years.

Shares of automobile companies were in focus, with the S&P BSE Auto index hitting an over three-month high on Monday, after Mahindra & Mahindra (M&M) reported strong earnings for the quarter ended March 2022. Also, Tata Motors receiving a go-ahead from the Gujarat government for acquiring Ford Motors passenger vehicle plant in Sanand (with a capacity of 240,000 units/annum) boosted sentiment.

The auto index closed 1.94 per cent up at 26,224.77, its highest level since February 17, 2022. The benchmark Sensex too climbed 1.9 per cent.

The index has rallied nearly 25 per cent from its 52-week low level of 21,083, hit