Auto stocks shine; Bajaj Auto at record high, Hero Motors up by more than 6 per cent

The laggards of 2020 is already outperforming the markets in 2021. Auto stocks are shining on the bourses even when Sensex is down and the broader markets are witnessing profit booking. 

The optimism in auto stocks is a warning sign to all the bears, indicating that this market may have some more headroom before its peaks out. 

Bajaj Auto is trading at its record highs after gaining nearly 10 per cent. BSE Auto index is the best performing sectoral index on the bourses, gaining by more than 2 per cent even when Sensex is down by nearly 0.50 per cent. 

Hero Motors is up by more than 6 per cent while Ashok Leyland is up by more than 4 per cent. TVS Motor, Exide, Motherson Sumi Systems and Amara Raja Batteries are up by nearly 4 per cent each. 

The auto stocks have been in the limelight ever since Tata Motors has more than doubled in its stock price in less than three months. The sales number have been good for almost all the auto makers. The introduction of scrappage policies in the coming budget is keeping the positive momentum in auto stocks alive.