Stock market crash: US tariffs trigger sell-off in auto stocks; Tata Motors, M&M, Bharat Forge hit lower circuit in opening trades

Auto and auto ancillary stocks took a significant hit last week, reacting to news of U.S. trade tariffs and monthly auto sales numbers. Tata Motors, Samvardhana Motherson, Sona BLW Precision, Apollo Tyres, M&M, and others fell between 3% and 9%.

The U.S. government imposed a 26% tariffs on Indian imports. As per experts, this could impact demand and the competitiveness of Indian automobile exports, especially in the auto component segment, which accounts for one-third of the total industry exports of $21.2 billion to the American market.

Companies like Sona Blw Precision Forgings, Samvardhana Motherson, Tata Motors and Bharat Forge are likely to see a major impact as they derive major revenue from the U.S. markets.

On the other side, the auto sales numbers for March offered some hope to the industry. Overall March sales rose 4.5% YoY and 1.4% MoM to 3.85 lakh passenger car sales, driven by promotions and festive season demand. Investors will be closely monitoring how auto companies will manage the tariff impact while sustaining their growth.

Key stocks to watch this week

• Eicher Motors broke below last week’s low and formed a shooting star pattern on the weekly chart, signaling bearish sentiment. It also breached the key support level at ₹5,300, reinforcing the weakness and raising the risk of further downside.

• Bharat Forge fell over 12% last week, forming a bearish candlestick on the weekly and daily charts. The index surrendered its key 21-day and 50-day exponential moving averages (EMAs), reflecting the weakness. Meanwhile, it has immediate support at the ₹1,002 level. If Bharat Forge slips below this zone on a closing basis, it could extend the weakness further.

• Samvardhana Motherson also fell over 9% last week and ended the week below the 200-week EMA, suggesting weakness in the coming sessions. After a sharp decline, the stock is approaching a key support zone at ₹116. If Samvardhana Motherson slips below this zone on a closing basis, it could extend its weakness further.

• Apollo Tyres fell below its 21-day and 50-day EMAs and breached the key support zone of ₹411 on a closing basis. It formed a bearish candlestick on the daily chart and closed below the low of the last eleven trading sessions. The next key support is now at ₹390.

Bearish outlook on Eicher Motors, Bharat Forge and Apollo Tyres

Conclusion

In a nutshell, a long-put strategy benefits if the share price declines. Options offer flexibility to capitalises on different market conditions—whether bullish, bearish, or range-bound. However, past performance does not guarantee future results. It’s essential to evaluate risks carefully and have a well-defined risk management plan before executing any strategy.

Disclaimer

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. The information is only for educational purposes. We do not recommend any particular stock, securities and strategies for trading. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before investing.