Nifty Auto Index at Risk of Snapping Five-Month Winning Streak
The Nifty Auto index is on track to snap its five-month winning streak due to profit booking after recent gains, elevated oil prices, and concerns over inflation.
The auto and auto ancillary stocks have declined this month with major laggards being Maruti Suzuki down nearly 11% and Ashok Leyland, Mahindra and Mahindra, Bharat Forge, Tube Investments of India, Bosch, Bajaj Auto, and Eicher Motors all declining more than 5%.
The decline is attributed to the recent interest rate hikes by major global central banks, including the European Central Bank, US Federal Reserve, and Bank of Japan, which signals that the Reserve Bank of India may also raise rates in its next policy meeting.
Experts suggest selective buying, keeping company fundamentals in mind, as most are positive about the sector's growth prospects.