Nifty Auto jumps 2.8%: Maruti Suzuki, UNO Minda, Mahindra, other auto stocks lead gains as oil drops to pre-war level

NSE data showed that the Nifty Auto index gained 2.8% or 748.60 points to its intraday high of 27,132.95 points on Thursday’s market, compared to 26,384.35 points at the previous stock market close.

The sector index emerged as the largest gainer on Thursday’s market among other domestic sectoral indices witnessing a crude oil-linked rally.

The easing crude oil price pressure has emerged as the largest trigger for the domestic equity markets on June 25, as investors focused on the energy prices dropping to their lowest level since February 27, 2026, one day before the United States carried out attacks against Iran in West Asia.

As India is an importer of the majority of its crude oil needs, lower oil prices in global markets indicate that the fuel prices will potentially reduce at the pump level over time as companies buy crude oil at a lower price.

However, this is estimated to take some time, as the companies importing crude oil have already purchased reserves of the energy source at a higher price from foreign nations. As the reserves get utilised, it will give way to cheaper oil in the domestic market.

How does this impact auto stocks?

Investors were focused on buying auto stocks as the lower crude oil prices acted as the catalyst to benefit sectors like Auto, as the companies use several crude oil-linked derivatives like rubber, paint, plastics, and other petrochemical products in their manufacturing process.

The lower oil prices, in turn, have a ripple effect on reducing the input cost of companies using these derivatives.

For the end customer, the lower price of crude oil translates into the rates of petrol and diesel at the pump level, which in turn fuels the demand for automobiles in the market.

Earlier this week, experts from the leading investment firm Goldman Sachs said that during periods of cooling fuel prices, market demand comes back fastest in scooters, entry-level cars, premium motorcycles and premium hatchbacks.

The analysts said that companies like TVS Motor, Eicher Motors and Maruti Suzuki are among others that are best-positioned to see an additional leg of upcoming volume growth due to the demand from lower oil prices.

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*Note: All data related to the CMP, intraday change, YTD returns, and 1-year returns have been collected from the NSE website.

How much have oil prices fallen?

Oil prices in the global market have declined more than 8% in the last five market sessions as investors focused on the easing market sentiment, while focusing on the final leg of the final peace agreement between the United States and Iran.

Data collected from Investing.com showed that Brent crude oil prices dropped 1.33% to $72.86 per bbl during Thursday’s trading session, compared to $73.87 per bbl at the previous market close.

The crude oil prices have dropped 24% in the last one month, and more than 28% in the last three months, as per the exchange data.