One can look at adding M&M and TVS Motor shares as potential addition in one

Stocks to buy today: After breakout in BSE Auto index last week, most of the auto majors are ascending at a faster rate this week. In last 5 sessions, Tata Motors share price has ascended over 6 per cent whereas shares of Maruti Suzuki has surged over 8 per cent in this period. M&M share price has shot up more than 4 per cent in last 5 sessions while TVS Motor share price appreciated to the tune of near 4.50 per cent in this time horizon.

According to stock market experts, after breakout in BSE Auto index, most of the auto stocks have given breakout, which is one of the major reasons for appreciation in auto stocks. They said that after the recent sell-off triggered by Russia-Ukraine wear, auto stocks are available at an attractive valuations. They went on to add that weakness in markets in recent sessions is mainly caused by the weakness in US economy. So, once there will be rebound in the markets, auto stocks will be one of the engines in rising in Indian stock market.

Speaking on the reasons for rise in auto stocks, Sumeet Bagadia, Executive Director at Choice Broking said, “After breakout in BSE Auto index last week, most of the auto stocks have given breakout this week. Now, auto stocks are looking positive on chart pattern and giving upside movement despite high volatility in the markets.”

Highlighting the fundamentals supporting auto stocks at the Dalal Street, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “In rebound post-Covid, auto stocks had remained non-participant because auto stocks have direct connect with the national economy. Indian stock markets are volatile these due to overseas triggers like Russia-Ukraine war, weakness in the US economy, etc. So, in current scenario, there is nothing wrong with the Indian economy because rupee was sliding due to soaring crude oil prices. Now, crude oil has retraced from its recent highs that may reflect in rupee paring its recent losses. So, once there will be trend reversal auto stocks will be one of the major engines that is expected to drive Indian stock market.”

On auto stock that one can buy at current levels, Avinash Gorakshkar of Profitmart Securities said, “High end four wheelers are expected to outperform two wheeler and basic model four wheeler sales. So, I suggest positional investors to look at M&M shares as potential addition in their stock portfolio.”

For short term investors, Sumeet Bagadia of Choice Broking suggested TVS Motor shares to buy expecting 10 per cent upside in the counter in near term.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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