Led by Mahindra & Mahindra, auto stocks rose again on Aug. 1, helped by strong monthly sales figures. India’s largest utility vehicle manufacturer secured an order for 100,000 all-new Scorpio-Ns within 30 minutes of bookings opening. The Nifty Auto Index gained 410 points, or 3.3%, to settle at an all-time closing high of 12,953.65.

While the benchmark has been volatile, the index has been making higher highs and higher lows since mid-May, up more than 35% since its March lows. Mahindra & Mahindra was the biggest gainer, up 6.2%, hitting an all-time high after receiving strong demand for Scorpio-N, with bookings open on Saturday.

Even its car sales rose 30.6% year-on-year to 56,148 units, although tractor sales fell 14% to 23,307 units in July. Prabhudas Lilladher raised its domestic passenger vehicle (PV) sales forecast for M&M by 3% and 2%, FY23 and FY24 EPS by 1%, and raised its June 2024 target price to Rs 1,400. (vs Rs 1,380), considering the extraordinary response and improved chip supply from Scorpio-N.

M&M is one of Prabhudas Lilladher’s top picks in the automotive segment because: of its healthy turnaround in the automotive segment through successive successful launches in the competitive SUV segment and its aggressive use of the EV trend can unlock value in’s Leading Perfect capital allocation strategy.

Tata Motors was the second-biggest gainer, up 6.6% after reporting a 51% year-on-year increase in July sales to 81,790 units, albeit from a lower base as sales a year earlier were affected by the second quarter. Covid wave. Auto auxiliary stocks Sona Comstar, Balkrishna Industries, Bosch, MRF and Bharat Forge rose from 2% to 4%.

Commercial vehicle maker Ashok Leyland rose 3.5% after selling 13,625 vehicles in the past month, up 58% from 8,650 in the same month last year. Maruti Suzuki, the country’s largest automaker, rose 2.6%, selling 175,000 vehicles in July, up 8.3% from a year earlier, while domestic sales rose 10.2%.

TVS Motor Company rose 2%, while Bajaj Auto rose 1.5% despite a 15% year-on-year decline in exports, as domestic sales rose 9% year-on-year to 183,000 units, resulting in a 4% decline in total sales to 354,000 for the month. Technically, the Nifty Auto Index formed a large bullish candle on the daily chart.