Nifty Auto Bucks Trend To End In Green As Headline Indices Close In Red; Know Why

Nifty Auto News: Headline indices closed in the red on May 6, 2025 amid broad-based selling. The 50-share Nifty closed at 24,379.60, down by 81.55 points or 0.33 per cent, and the BSE Sensex closed lower by 155.77 points or 0.19 per cent at 80,641.07. The Nifty Auto index bucked the trend amid broad-based selling to close in the green at 22,737.60, up by 0.17 per cent.

Why Nifty Auto Index Gained

At the day’s low, the Nifty 50 index shed 286.69 points to trade at 24,356.75, and the Sensex declined 286.69 points to trade at 80,510. On the other hand, the Nifty Auto index bucked the trend as it gained nearly 2 per cent to trade at a day-high of 23092.65.

The Nifty Auto index gained, as shares of its top-constituents rallied today. Shares of domestic auto manufacturers gained on the back of strong performance.

Notably, the top constituents of the index include Mahindra & Mahindra, Maruti Suzuki India, Tata Motors and Bajaj Auto. Shares of Mahindra & Mahindra surged over 4 per cent to trade at an intraday high of Rs 3,159.7 apiece on the NSE after the company posted growth in its bottom line and top line. The stock closed at Rs 3,058.4 apiece, up by 1.22 per cent on the NSE.

Mahindra & Mahindra Q4 Results

Mahindra & Mahindra’s consolidated revenue from operations surged over 20 per cent to Rs 42,599 crore in the fourth quarter of FY25, as against Rs 35,452 crore in corresponding quarter of the previous year.

The automaker’s profit-after-tax (PAT) for the March quarter of FY25 also surged by 20 per cent to Rs 3,295 crore compared to Rs 2,754 crore in the year-ago period. The automaker’s revenue from operations for FY25 grew by 14 per cent to Rs 1,59,211 crore compared to Rs 1,39,078 crore in FY24. Mahindra and Mahindra’s PAT also grew by 20 per cent to Rs 13,167 crore in FY25 compared to Rs 10,939 crore in FY24.

Maruti Suzuki India Q4 Results

Maruti Suzuki India, Tata Motors and Bajaj Auto also gained over 1 per cent. Maruti Suzuki’s Q4 FY25 net profit declined 4.30 per cent year-on-year (y-o-y) to Rs 3,711 crore. However, the company managed to beat the street estimates, which anticipated PAT to be Rs 3,801 crore. Revenue from operations increased 6.40 per cent to Rs 40,674 crore.

Bhavya Shah, head of research at Wallfort PMS told Outlook Money that while aggregate sales growth has been moderate in the Indian automotive space, Mahindra & Mahindra has outperformed peers.

“Aggregate auto sales growth has been moderate while leading auto majors like M&M, MSIL have been a mixed bag for FY25 as well as Q4FY25. M&M outperformed its peers by delivering double digit growth,” Shah said.

Other major Nifty Auto constituents, which gained in today’s trade included Hero MotoCorp, Eicher Motors, Balkrishna Industries and Exide Industries closed higher by up to 2.48 per cent. Shah said that since the three stocks (M&M, MSIL and Tata Motors) are Nifty Auto heavyweights their financial performance has impacted the performance of the index and is also likely to impact the performance on a medium term basis.

“Being the heavy weight of Nifty Auto Index, Mahindra & Mahindra, MSIL, and Tata Motors definitely has an anchor effect, and hence, their financial performance will have driving effect on the Nifty Auto Index in the medium term,” Shah said