Nifty Auto down 13% in a month: These stocks could be your next big opportunity | Check target price & more related news here

Nifty Auto down 13% in a month: These stocks could be your next big opportunity | Check target price

The Nifty Auto index has become one of the worst-performing sectoral indices over the past month, falling nearly 13% in March and around 16.7% so far in 2026. The sharp drop comes amid broader bearish sentiment in the Indian stock market, driven by heightened global uncertainty following the start of the Iran-US war on February 28.

Nifty Auto was down around 2.55% during the intraday trading session on Monday, with stocks like Ashok Leyland, Exide Industries, Eicher Motors, Bharat Forging, Mahindra & Mahindra, TVS Motor, TMPV, etc. among the top sectoral losers.

Why are auto stocks falling?

The decline in auto stocks came as part of weaker sentiment prevailing across the market as the war between Iran and the United States kept investors on edge. “Crude oil remains elevated near $107 a barrel, while the rupee has weakened to record lows against the dollar.

That combination is negative for automobiles, which are very sensitive to fuel prices, input costs and imported components. At the same time, concerns about supply disruptions related to the West Asia conflict and rising logistics costs are increasing uncertainty.

While underlying demand trends had remained stable, the street is now shifting focus from volumes to margin pressure, which is driving the correction across all auto names,” said Harshal Dasani, Chief Business Officer, INVasset PMS.

What’s next for auto stocks going forward?

High-quality companies with strong internal positioning, pricing power and healthy balance sheets may see some recovery if crude oil prices cool and currency volatility stabilizes. Underlining the crude oil shock risks in the auto sector, Harshal Dasani added, “The structural demand story for Indian automobiles remains intact, but in the near term the sector is being driven more by macro headwinds than company-specific fundamentals.”

While the automobile industry continues to face spillover effect due to the Iran-US war in West Asia, strong retail demand may support the industry. However, OEMs with export exposure to the Middle East are likely to experience weak exports in the near term, Motilal Oswal noted in his report published on Monday, March 30.

Top Auto Stocks Likely to Perform Well

Mahindra & Mahindra, Tata Motors Passengers Vehicle Limited is likely to outperform its peers in the market. Motilal Oswal remained bullish on Maruti Suzuki India Limited, TVS Motor Company Limited and M&M.

Target price of auto stocks according to Motilal Oswal report

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