The Nifty Auto index climbed 1% to an intraday high of 26,976.45 on Thursday, demonstrating resilience against the ongoing political and regulatory debate surrounding India’s nationwide rollout of E20 ethanol-blended fuel.
The sector’s advance was part of a broader rally in Indian equity benchmarks, with automotive stocks leading the charge despite the uncertainty clouding the fuel policy.
Major vehicle manufacturers saw varied but generally positive performance.
Ashok Leyland, Hero Motocorp, and Mahindra & Mahindra were among the gainers, supported by strong investor sentiment and broader market momentum.
The buying interest suggests that traders are currently discounting the potential near-term impact of the E20 controversy on auto margins or sales volumes.
However, the rally was not uniform across the entire supply chain.