Nifty Auto rises 2.7%: Tata Motors PV, Maruti Suzuki, Ashok Leyland, other auto stocks lead gains amid lower oil prices

The sectoral benchmark index, Nifty Auto, surged 2.7% to its intraday high of 27,028.40 points on Monday, compared to 26,293.85 points at the previous market close, according to NSE data.

The rally in auto stocks comes on the backdrop of the crude oil prices falling more than 4% intraday, easing the investors’ sentiment in the market after President Donald Trump announced that the United States and Iran have agreed on a peace deal, which is set to be signed later during the week.

What are the factors impacting auto stocks?

After 16 weeks of ongoing conflict and three rounds of negotiation, US President Donald Trump on Monday, June 15, announced that the deal with Iran “is now complete.”

As part of the agreement, the key maritime oil trading route, the Strait of Hormuz, will be reopened with the US Navy pulling out from its existing blockade to ensure the free flow of crude oil across the world.

Brent crude oil prices dropped more than 4% to a low of $83.05 per barrel during Monday’s market session after Trump declared that the United States and Iran had agreed to a peace deal in the 16th week of the war.

A fall in the global crude oil prices is beneficial for sectors like Auto as the companies use several crude oil-linked derivatives like rubber, paint, plastics, and other petrochemical products, while the end customer uses fuels like petrol and diesel, the rates of which impact overall demand.

The Finance Ministry, via a notification on June 11, said that the excise duty applicable on ethanol grade of petrol will be “nil” under the 20% (E20), 25% (E25), 27% (E27), 30% (E30) categories.

As companies have already developed their ethanol and flex fuel variants of vehicles, this move of a tax cut is beneficial for the companies while also generating an overall push for green vehicles in the Indian market.

"Passenger vehicles, three-wheelers and two-wheelers recorded the highest ever sales of May in 2026, with high double-digit growth in each segment," SIAM Director General Rajesh Menon said in a statement cited by the news agency.

The stock market investors were also focused on value buying auto stocks on Monday’s market, as the companies have largely reported an overall increase in volumes across categories despite the rising input costs.

“Premium segment continues to outshine entry segment for both PVs and 2Ws,” said analysts at CLSA in a note last week. However, Jefferies experts said that the demand and the margin concerns remain for the Indian automakers.

Nifty Auto vs NIFTY50

In the last three months, the Nifty Auto has significantly outperformed the benchmark NIFTY50 index despite an overall cautious sentiment in the market amid the continued foreign investor outflows.

NSE data showed that the Nifty Auto index has gained 11.4% in the last three months, while the NIFTY50 has risen 3.5% over the same period.

The sectoral index has delivered investors 3.4% returns in the past one month, and nearly 5% gains in the last five trading sessions on NSE. Meanwhile, the NIFTY50 index has risen 1.3% in the last one month and around 3.6% in the past market week.

Prominent auto stocks in focus today

**1-month & YTD (year-to-date) returns along with the stock prices are based on NSE data.