Auto Stocks Rebound From Early Losses as Maruti Suzuki Jumps 5 Percent on Jefferies Upgrade, Ancillaries Recover

Auto stocks staged a sharp rebound from early losses on Tuesday, with bullish brokerage commentary helping lift sentiment after a weak start to the session. The Nifty Auto index fell as much as 1.3 percent to a day's low of 26,067.70 in early trade before recovering to trade around 26,563.95, up 0.55 percent from the previous close, a swing of more than two percentage points through the session.

Maruti Suzuki led the rebound in auto stocks, surging as much as 5 percent intraday after Jefferies upgraded the stock to Buy from Hold and raised its target price, while select auto ancillaries also clawed back a large part of their early losses as the broader sector found its footing.

Click Here – Get Free Investment Predictions

Maruti Suzuki Leads the Rebound in Auto Stocks

Maruti Suzuki was trading around Rs 14,036, up about 4.7 percent on the day, after Jefferies upgraded the stock to Buy from Hold and lifted its target price to Rs 16,500, implying further upside of around 17 percent from current levels. The brokerage cited firmer passenger vehicle demand and softer input costs, including lower crude and metal prices, and raised its earnings per share estimates for FY27 to FY29, now projecting a 16 percent compound annual growth rate through FY29.

The table below summarises today's key moves among auto stocks leading the rebound.

Stock / Index	Level	Day Change
Nifty Auto	26,563.95	+0.55% (day low -1.3%)
Maruti Suzuki	Rs 14,036	+4.7%
Uno Minda	Rs 1,102.20	+1.0%
Tata Motors Passenger Vehicles	Rs 353.60	+2.5%

Ancillaries Recover as Auto Stocks Find Their Footing

Uno Minda rose about 1 percent to trade around Rs 1,102.20, recovering sharply from a day's low of Rs 1,067.70 as buying returned to the auto ancillary space. Other component makers also pared early losses meaningfully, even though a few names remained marginally negative on the day, reflecting a broad based but uneven recovery across the auto ancillary basket. Use the Univest Screener to compare how individual auto ancillary stocks are tracking through the session.

Tata Motors Passenger Vehicles also featured among the stronger auto stocks, gaining around 2.5 percent, while the broader Nifty Auto index move suggests investors are differentiating between names with company specific catalysts and those simply tracking the sector mood.

Track Auto Stocks Recovery on Univest Screener

What Should Investors Watch in Auto Stocks Now

Investors tracking auto stocks should watch whether the Nifty Auto index can hold above its day's low and build on the afternoon recovery, since a sustained move back above 26,700 would strengthen the case that today's rebound has staying power rather than being a brief bounce. Brokerage commentary, including fresh upgrades or target price revisions, is likely to remain a key swing factor for individual auto stocks through the rest of the week.

Download the Univest iOS App or Univest Android App to track live auto stocks prices and brokerage rating changes.

Conclusion

Auto stocks have clawed back a large part of their early session losses, with Maruti Suzuki's sharp rally on the back of a Jefferies upgrade doing much of the heavy lifting, while select ancillaries also joined the recovery. With the Nifty Auto index still trading in a relatively tight band versus its recent highs, the sector's next move is likely to hinge on fresh brokerage commentary and the upcoming June quarter results season. Stock price movements are subject to market risk, so investors should consult a SEBI registered advisor before making any investment decision.

Frequently Asked Questions

Why did auto stocks rebound today?

Ans. Auto stocks rebounded from early losses as bullish brokerage commentary, led by a Jefferies upgrade on Maruti Suzuki, helped lift sentiment across the sector after a weak opening session.

How much did the Nifty Auto index recover today?

Ans. The Nifty Auto index fell as much as 1.3 percent to a day's low of 26,067.70 before recovering to trade around 26,563.95, up 0.55 percent from the previous close.

Why did Maruti Suzuki shares jump today?

Ans. Maruti Suzuki shares jumped as much as 5 percent intraday after Jefferies upgraded the stock to Buy from Hold and raised its target price to Rs 16,500, citing firmer demand and softer input costs.

Which auto ancillary stocks led the rebound?

Ans. Uno Minda was among the auto ancillary stocks that led the rebound, recovering sharply from its day's low to trade around 1 percent higher on the day.

What is Jefferies' new target price for Maruti Suzuki?

Ans. Jefferies has set a target price of Rs 16,500 for Maruti Suzuki, implying further upside of around 17 percent from current levels, after upgrading the stock to Buy from Hold.

Is the rebound in auto stocks expected to continue?

Ans. While the rebound reflects improved near term sentiment, sustainability will depend on whether the Nifty Auto index can hold its recovery and on fresh brokerage commentary in the days ahead.

Should investors buy auto stocks after today's rebound?

Ans. This article does not constitute investment advice. Investors should evaluate individual company fundamentals and consult a SEBI registered advisor before making any investment decision.