On April 7, 2025, the Nifty Auto Index witnessed sharp selling pressure as several leading automobile and auto ancillary stocks declined significantly. The top five losers—Bharat Forge, Tata Motors, Balkrishna Industries, Bajaj Auto, and Motherson—dragged the index lower amid rising concerns over demand outlook, margin pressures, and weak global cues.
These stocks posted single-day losses ranging from nearly 4% to over 6%, signalling broad-based weakness across the auto segment.
Bharat Forge led the losses in the Nifty Auto Index, falling over 6.5%. The stock hit a new 52-week low of ₹919.10 during the session. It has been under continuous pressure for the past month, losing more than 12% in the last 30 days.
Tata Motors continued its downtrend, shedding over 5% intraday and touching a new 52-week low of ₹535.75. The stock has now declined more than 42% over the last 12 months, driven by concerns over falling export volumes, electric vehicle profitability, and weakness in JLR sales.
Tyre major Balkrishna Industries fell nearly 5%, hitting its 52-week low during the session. The stock has been in a downward trend throughout the past month and is now down more than 11% in 30 days.
Bajaj Auto extended its recent weakness, falling nearly 5%. Despite strong domestic two-wheeler sales, investor sentiment remains cautious due to rising input costs and weaker export performance. The stock is now trading close to its 52-week low.
Auto components giant Motherson also closed in the red, down nearly 4%. The stock hit a 52-week low of ₹107.25 intraday and has lost more than 10% over the past month, reflecting declining confidence in global auto demand recovery.
April 7 saw widespread selling across auto stocks, reflecting concerns over global demand weakness, margin pressures, and sector rotation by institutional investors. With several stocks hitting fresh 52-week lows, short-term sentiment in the sector appears bearish.
While long-term growth drivers such as EV adoption and rural demand remain intact, the near-term trend will likely depend on upcoming Q4 results, management guidance, and macroeconomic indicators like interest rates and commodity prices.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 7, 2025, 9:56 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and asset management, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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