NEW DELHI: The Nifty Auto and BSE Auto indices jumped over 10% in Thursday's trade, outperforming the benchmark Sensex and Nifty which rose 4% each.
The performance of auto stocks today can be confounding, given that covid-19 pandemic has exacerbated the woes of the industry which was struggling with a slump in sales because of a downturn in the domestic economy.
The virus outbreak disrupted global supply chains, as China, where it all began, had to shut down factories and ports to fight the virus.
As a result, domestic automobile companies took a hit. Their sales slumped and companies were forced to cut production. To put it in perspective, Maruti Suzuki India, which sells every second car in the country, sold 83,792 units in March,