Auto stocks skid 1% on profit booking despite softer crude, firm markets

The Nifty Auto index fell over 1% on Thursday despite easing crude oil prices and a broadly positive trend in the domestic equity market, as investors booked profits following the previous session’s rally.The sectoral index shed 292 points, or 1.02%, to close at 28,231. In contrast, the benchmark Nifty 50 and Sensex gained 44 points and 32 points, respectively, to settle at 25,299.35 and 81,911.01.Among auto constituents, Hyundai Motor India was the biggest loser, declining nearly 2.5%, followed by Mahindra & Mahindra, which fell 1.9%, and Tata Motors, down 1.3%. The index had rallied on Wednesday, supported by a decline in crude oil prices. Analysts attributed Thursday’s reversal largely to profit booking.The Nifty IT index also remained under pressure, extending its decline to a third consecutive session despite a recovery in global AI and technology stocks.“Global AI stock recovery is likely to continue in the near term. The sharp corrections seen globally last week have subdued following the sweeping victory of the Democrats. It could be unrealistic to expect further sharp decline, but the Nvidia issue could weigh,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.Meanwhile, the rupee surrendered its early gains from foreign fund inflows as state-run banks purchased dollars on behalf of oil marketing companies, while concerns over rising inflation added to pressure. The currency closed at 94.04 against the US dollar, down 0.4% from its previous close.“Closing near 94.0425, the pair reflects a clear tug-of-war where broad US dollar strength and elevated Fed rate expectations have temporarily overshadowed India’s supportive local equity inflows and easing oil costs,” said Anil Kumar Bhansali, head of treasury, Finrex Treasury Advisors LLP.Adding to currency concerns, India’s consumer price inflation rose to a two-year high of 6.09% in October, breaching the Reserve Bank of India’s upper tolerance limit of 6%. Published - November 12, 2026 05:21 pm IST