Nifty Auto Falls Nearly 3% As Crude Oil Climbs Above $100; M&M, Maruti And Eicher Lead Declines

The Nifty Auto index declined nearly 3% in morning trade on March 12 as automobile stocks came under selling pressure after global crude oil prices moved back above $100 per barrel.

At 10:44 am, the BSE Sensex was down about 550 points or 0.7% at around 76,300, while the Nifty 50 fell below 23,700. Market breadth on the National Stock Exchange of India remained weak, with 2,481 stocks declining against 1,049 advancing shares.

The Nifty Auto index dropped 2.8%, marking the steepest decline among sectoral indices during the session.

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Auto Stocks Among Top Nifty Losers

Shares of major automobile companies recorded losses during the trading session. Mahindra & Mahindra declined about 3.45%, making it the biggest laggard on the Nifty 50 index during the morning session.

Other automobile stocks also fell. Eicher Motors dropped around 2.8%, while Maruti Suzuki India declined approximately 2.4%.

Shares of Bajaj Auto slipped about 2.2%, and Tata Motors passenger vehicle segment-linked stocks declined around 2.5%.

As a result, five automobile companies were among the top losing stocks on the benchmark index during the trading session.

Crude Oil Rally Pressures Auto Sector

The decline in auto stocks came as crude oil prices increased sharply in global markets. Brent crude oil was trading close to $100 per barrel amid renewed geopolitical tensions in the Middle East and concerns over potential disruptions in shipping routes near the Strait of Hormuz, a key global energy transit corridor.

Rising crude oil prices can increase fuel costs for consumers and raise input costs for automobile manufacturers because several vehicle components are linked to petrochemical products, including plastics and synthetic rubber.

Higher energy prices may also influence transportation and logistics costs within the automotive supply chain.

Broader Market Under Pressure

The broader equity market also remained under pressure during the session. Stocks such as Trent, Titan Company, and Hindalco Industries declined between about 1.8% and 2.8%.

Sectoral indices also recorded losses beyond the automobile segment. The Nifty Consumer Durables index fell about 1.9%, while the Nifty FMCG index declined roughly 1.5%. The Nifty Metal index slipped around 1.4%.

At the same time, energy-linked stocks moved higher. The Nifty Energy index rose more than 1%, and the Nifty Oil & Gas index gained about 0.7%.

In addition, market volatility was up during the session, with the India VIX gaining over 4%. The movement in equities was part of a broader market caution driven by higher global energy prices and geopolitical events impacting crude oil routes.