Automobile heavyweights Eicher Motors, Hero MotoCorp, Bajaj Auto, Mahindra & Mahindra, and TVS Motor Company experienced significant selling pressure on Wednesday, declining up to 6% despite posting broadly robust August sales figures. According to INVAsset PMS Business Head Harshal Dasani, the steep selloff was triggered by bearish macro sentiment as the markets opened lower with the Sensex down 472 points and the Nifty near 23,859 on renewed US-Iran escalation and rising crude prices. The selling pressure came as domestic demand remained resilient but was offset by sharp drops in export dispatches and modest channel-filling ahead of the festive season. This triggered a classic profit-taking reaction following recent multi-month rallies in the automotive sector, with the decline compounded by mixed August sales figures across major players. As per latest market data, the BSE AUTO index is down 3.0% at 60,975.9, with Eicher Motors leading the decline at 5.5% and Bajaj Auto falling 3.4%.
Hero MotoCorp witnessed notable selling pressure, declining up to 6.8% to trade as low as ₹5,173 after reporting mixed August sales figures. However, the company's latest quarterly results show strong performance with net profit growing 35.8% year-on-year to ₹14,618 million for Q1 FY27, compared to ₹10,762 million in the same period last year. Net sales rose 34.9% to ₹131,264 million during the quarter as against ₹97,278 million in April-June 2025. For the full year ended March 2026, Hero MotoCorp reported 32.0% increase in net profit to ₹57,757 million compared to ₹43,758 million during FY25, with revenue growing 15.9% to ₹474,112 million. The stock's technical outlook remains challenging as it has broken below both its short-term 20-day moving average at ₹5,676.3 and its key long-term 200-day moving average at ₹5,419.0, with the stock now 13.4% away from hitting its 52-week low of ₹4,671.50. Over 3 lakh shares were traded at 0.73 times the stock's 10-day average, reflecting heightened short-term volatility.
Eicher Motors witnessed a sharp single-day pullback, falling nearly 4% to trade around the ₹7,654 level after facing strong technical resistance near the psychological ₹8,200 mark. As reported by Share.Market by PhonePe, the stock has broken below its short-term 20-day moving average at ₹8,008.1 and is currently testing its intermediate 50-day moving average at ₹7,740.2 as immediate support. A sustained move below this zone could open room towards its primary 200-day moving average at ₹7,365.7, which remains the key structural support. Despite the decline, the stock remains 7.7% away from its 52-week high of ₹8,230, with over 3 lakh shares traded at 0.80 times the stock's 10-day average. According to Outlook Business, the stock's broader long-term trend remains positive, with analysts expecting consolidation in the ₹7,365-7,740 range rather than an immediate reversal.
The selling pressure across automobile stocks was compounded by rising global crude oil prices which directly increase fuel running costs and freight expenses across the automotive supply chain. According to INVAsset PMS Harshal Dasani, autos take that harder than most because oil sits inside the consumer's running cost, the freight bill and the input basket at once. He pointed out that August's headline growth of 50 to 59% for several manufacturers is measured against a month in 2025 when buyers deliberately stopped purchasing ahead of the GST cut, and September's comparison flips against the GST bonanza month. Market analysts suggest that while domestic demand remains resilient, these macroeconomic factors have created a challenging environment for automotive stocks in the near term. The mixed sales performance across major players, including Eicher Motors reporting 17.7% year-on-year growth in VECV sales to 8,434 units, has added to investor uncertainty about sector momentum. Technical resistance and moving-average breaches point to heightened near-term volatility, with investors closely tracking support levels before assessing the possibility of a renewed uptrend.
