Auto Stocks: Nifty Auto Soars 3.5% In Past 5 Days Amid Tariff Optimism - Top Gainers

Indian auto stocks maintained their upward momentum on May 16, riding high on investor optimism surrounding potential tariff concessions by the United States. This comes after US President Donald Trump hinted at a possible zero-tariff offer from India on American goods—though specifics of the deal remain under wraps.

Nifty Auto has gone up by 825.80 points, or 3.57%, in the last five days and is now at 23,953.15 points. During this time, it reached a high of 24,009.75 points and a low of 23,777.55 points. Over the past year, the index has ranged between a low of 19,316.65 and a high of 27,696.10 points.

The Nifty Auto index edged up by 0.62% to close at 23,953 points, marking its second consecutive day of gains and reflecting investor confidence in the sector’s growth outlook.

Also Read: Trump Claims India Offered to Cut 100% of Tariffs, But Says No Rush for Trade Deal | Republic World

TII leads the charge

Tube Investments of India (TII) emerged as the standout performer in the segment, surging 4.76% to Rs 3,048.60. The stock has gained attention on the back of strong fundamentals and a positive long-term business outlook, making it a favourite among investors in the auto ancillary space.

Hero MotoCorp, Tata Motors join the race

The broader rally in equities also supported other automotive counters. Hero MotoCorp extended its winning streak, rising 0.23% to Rs 4,335.90, and touching a fresh three-month high. The uptrend has been fueled by the company's robust Q4 earnings, reported on May 14.

Tata Motors added 0.41% to Rs 731.10, maintaining its upward trajectory after Jaguar Land Rover (JLR) highlighted the United States as its fastest-growing market.

Bajaj Auto, TVS gain too

Bajaj Auto posted a notable gain of 1.98% to Rs 8,491, while TVS Motor closed slightly higher at Rs 2,838, reflecting steady buying interest. Samvardhana Motherson also saw a rise, ending 2.33% higher at Rs 146.99.

Ashok Leyland, M&M lose

On the other hand, Ashok Leyland registered a marginal decline, finishing the session at Rs 237.26, down 0.88%, while Maruti Suzuki saw a modest gain of 0.13% to Rs 12,964.30.

Among other key stocks, Exide Industries gained 2.36%, Eicher Motors ended 0.79% higher at Rs 5,509, and Bosch also closed in the green. Mahindra & Mahindra (M&M), however, edged lower by 0.33% to Rs 3,133.90, while MRF slipped 0.70% to Rs 1,40,145.

US Trade Policy: A potential gamechanger

The rally in auto stocks was underpinned by President Trump’s May 15 remarks, where he claimed India was offering a “no-tariff” deal on US goods.

Speaking at a business forum in Qatar, Trump said, “It’s very hard to sell in India, and they are offering us a deal where basically they are willing to literally charge us no tariffs.” He also reportedly urged Apple CEO Tim Cook to favour domestic production over expansion into India, reiterating the administration’s protectionist tilt.

Earlier this year, the US imposed a 25% tariff on imported vehicles and auto components as part of broader reciprocal trade actions. While some of those duties have since been relaxed, a prospective bilateral trade deal with India is widely viewed as a potential game-changer for the country’s automotive exports.