Latest news with #EicherMotors
Mint
a day ago
- Automotive
- Mint
Recommended stocks to buy today, 20 June, by India's leading market experts
On June 19, Indian stocks closed slightly lower in a choppy session, with the Nifty 50 slipping below 24,800 as most sectors—auto being the lone exception—saw selling pressure. The market opened flat-to-negative and spent the day trading in a tight band, buffeted by mixed global cues after the US Federal Reserve held rates steady but warned of higher inflation and slower growth ahead. Mounting geopolitical strains in the Middle East further dampened sentiment. By the bell, the Sensex had lost 82.79 points (0.10%) to end at 81,361.87, while the Nifty dropped 18.80 points (0.08%) to finish at 24,793.25. Broader gauges underperformed, with the BSE Midcap and Smallcap indices each sliding over 1.5%. Top 3 stocks recommended for today by Ankush Bajaj Why it's recommended: Eicher Motors recently broke out above the upper trendline of a falling wedge pattern on the daily chart, a bullish reversal formation suggesting the end of a prior downtrend. This breakout, combined with the RSI nearing 60, indicates growing bullish momentum. The stock is showing strength with a clean breakout structure, signaling potential for near-term upside. Key metrics Resistance level: ₹5,590 (short-term target) Support level: ₹5,445 (pattern invalidation level) Pattern: Falling wedge breakout on the daily chart RSI: Approaching 60 on daily chart, indicating strengthening bullish momentum Technical analysis: The breakout from the falling wedge pattern adds weight to the bullish outlook. The RSI moving toward 60 supports the idea of momentum building up for a further upside. Price action is strong post-breakout and the stock is attempting to establish a higher base. Watch for increasing volume to confirm breakout validity. Risk factors: Although the RSI is not overbought, a rapid rise could lead to brief consolidations or pullbacks. A drop below ₹5,445 would invalidate the breakout, potentially attracting sellers. Volume follow-through remains crucial for confirming strength beyond the breakout level Buy at: ₹5,493.50 Target price: ₹5,590 Stop loss: ₹5,445 Also read: Why some Indian companies are paying dividends despite posting losses Why it's recommended: Bharti Airtel is showing signs of bullish momentum with the RSI at 58 on the daily chart and trending upward, indicating improving strength in the current move. On the 45-minute timeframe, the stock is forming a triangle pattern and is poised for a breakout. If it sustains above ₹1,880, a sharp move up is anticipated. Key metrics: Resistance level: ₹1,898- ₹1,904 (short-term target) Support level: ₹1,860 (pattern invalidation level) Pattern: Triangle breakout setup on lower timeframe (45-min) RSI: Rising toward 60 on the daily chart, showing a strengthening bullish trend. Technical analysis: The convergence of a rising daily RSI and a triangle breakout setup on the lower timeframe supports a bullish outlook. Sustained movement above ₹1,880 will confirm the breakout, with potential for a quick move toward the ₹1,900+ zone. Price structure remains strong, and buyers appear to be stepping in around key support zones Risk factors: While the RSI is still below overbought levels, a breakout failure below ₹1,860 would invalidate the setup and could lead to short-term weakness or consolidation. Volume confirmation near ₹1,880 is key to validating the breakout attempt. Buy at: ₹1,877.00 Target price: ₹1,898- ₹1,904 Stop loss: ₹1,860.00 Also read | The honest taxpayer's dilemma: When rules become a disadvantage in investing Why it's recommended: M&M is exhibiting strong bullish momentum, with the RSI at 59 on the daily chart, indicating a steady upward trend. On the lower timeframe, the stock has broken out of a triangle pattern, which suggests the end of consolidation and the start of a new leg higher. If this breakout holds, further upside toward the ₹3,200+ zone is expected. Key metrics: Resistance level: ₹3,200– ₹3,225 (short-term target) Support level: ₹3,028 (pattern invalidation level) Pattern: Triangle breakout on lower timeframe RSI: At 59 on daily chart, indicating bullish momentum building. Technical analysis: The triangle breakout in lower timeframes complements the daily chart's bullish RSI structure. The stock is trading with strong price action and has potential for continuation if it maintains above the breakout level. Momentum indicators support further upside, especially if volume confirms the move Risk factors: While the RSI is rising, a pullback may occur if the price fails to hold above the breakout level. A break below ₹3,028 would invalidate the setup and may lead to short-term downside pressure. Watch for volume confirmation to support the bullish move. Buy at: ₹3,094.80 Target price: ₹3,200– ₹3,225 Stop loss: ₹3,028.00 Here are two stocks to trade today, as recommended by Trade Brains Portal Target price: ₹405 in 16-24 months Stop loss: ₹320 Why it's recommended: Founded in 1978, Biocon Ltd is the top biopharma firm in India, improving the lives of people in more than 120 countries by developing novel and cost-effective treatments for cancer, diabetes, and autoimmune diseases. The company employs more than 18,200 people who work in the research services, biosimilars, generics, and new biologics divisions. The largest integrated insulin manufacturing and research and development facility in Malaysia is operated by Biocon, which also contains one of the biggest biomanufacturing facilities for insulin, monoclonal antibodies, and devices. The group's four incubated businesses are Biocon Biologics, which focuses on biosimilars and accounts for 58% of total revenue in FY25; the generics division, which contributes 19%; and Syngene, which provides research services and accounts for 23% of total revenue in FY25. When comparing the performance on a like-for-like basis, revenue from operations totalled ₹15,262 crore, a 10% year-on-year increase; Ebitda reached ₹4,374 crore with a margin of 27%, and the net profit in FY25 was ₹1,013 crore, which represents a significant turnaround. The company has launched several new products, such as Liraglutide in the UK, Dasatinib in the US, and YesintekTM, which boosted revenue performance in Q4FY25. Going forward, the company plans to invest $200-250 million in capital expenditures across several business segments. While Syngene will increase the capacity of its research centres and production facilities for large and small compounds, BBL wants to expand its insulin factory in Malaysia as part of its capital expenditure plans. It is anticipated to spend $50 million in capital expenditures on generics in the upcoming year. The business anticipates approving generic Copaxone in the US and launching liraglutide there. According to management, Lenalidomide will be introduced in limitless quantities, with more launches scheduled for FY26. Additionally, five other products—Stelara, Bevacizumab, Aspart, Aflibercept, and Denosumab—will be introduced during the next 12 to 18 months. Risk Factor: If clearances from the US Food and Drug Administration, the European Medicines Agency, and those in the Asian and Latin American markets are delayed, their biosimilar business may miss out on opportunities. Additionally, the company faces fierce competition from a number of cost-competitive Indian enterprises as well as strong defense tactics from innovative companies that produce authorized generics. Target price: ₹1,050 in 16-24 months Stop loss: ₹730 Why it's recommended: Titagarh Rail Systems was founded in 1997 and has over 25 years of expertise as a top provider of comprehensive mobility solutions in India. Its main activities include the production of passenger coaches, propulsion equipment, urban metros, semi-high-speed trains, and a variety of wagons, including specialized ones. With four production sites, the firm can now produce 12,000 wagons and 300 coaches annually, processing about 30,000 tonnes of casting steel. As of FY25, their entire order book was worth ₹11,200 crore. Titagarh Rail Systems is the only Indian company that produces both wagons and coaches. In FY25, operational revenue was ₹3,867 crore, a slight increase over ₹3,853 crore in FY24; however, it increased 18% CAGR since FY23. PAT stood at ₹274 crore, down 4.9% from ₹288 crore in FY24; however, it has been increasing at a robust CAGR of 43% since FY23. In FY25, the FRS segment's revenue was ₹3,610.27 crore, up 5.64% year over year. In FY25, the PRS segment's income was ₹255.55 crore. The company achieved a record for the most wagons ever produced in a single year in India, with 9,431 wagons. In FY25, it produced 27,240 metric tonnes in the foundry, setting a new production record. In order to increase its production to a significantly higher level in FY26, the company plans to expand its foundry by constructing fully modern foundry production facilities. About 40,000 tonnes of castings are what the company hopes to produce in the first phase of production in FY26. Since the supply chain problems with China have been fixed, the business anticipates that manufacturing for the Bangalore Metro will be rather streamlined. It is anticipated that production will be completely simplified starting in Q2 of FY26. Starting in FY26, the company plans to increase its propulsion division by between 125 and 150 traction motors every month, or 1,500 to 1,800 traction motors per month. The company has its sights set on winning a number of projects from the enormous potential pipeline. Among the major projects are the anticipated ₹15,800 crore Metro coach contracts and the ₹72,000 crore Vande Bharat Coach. Risk Factor: More than 90% of the company's operating revenues come from freight rail systems and wagons, and Indian Railways continues to be the company's biggest source of sales. Additionally, geographically speaking, the company works on nearly all local projects and has little to no exposure to international enterprises. Two stock recommendations by MarketSmith India Why it's recommended: Capital infusion by promoters, seasonal positive tailwind, EPS growth. Key metrics: P/E: 34.54 | 52-week high: ₹1,064 | Volume: ₹354.22 crore Technical analysis: 50-DMA retake, positive institutional holding Risk factors: Increased raw-material cost and margin pressure, high operational leverage, competitive and regulatory risk. Buy at: ₹638.50 Target price: ₹740 in two to three months Stop loss: ₹687 Why it's recommended: Strong Q4 performance, expansion in mobility business, growth in consumer business. Key metrics: P/E: 47.42 | 52-week high: ₹39,088 | Volume: ₹68.04 crore Technical analysis: Trending above all key moving averages, bullish continuation pattern. Risk factors: Supply chain, currency risk, competition and regulatory pressure. Buy at: ₹32,375 Target price: ₹36,200 in two to three months Stop loss: ₹30,300 Also Read: Is the Israel-Iran war a billion-dollar threat to Adani Ports & SEZ? Two stocks to trade, recommended by NeoTrader's Raja Venkatraman BODALCHEM: Buy above: ₹68 | Stop: ₹64.50 | Target: ₹74-78 LTFOODS: Buy above: ₹426 | Stop: ₹410 | Target: ₹475-495 MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. Trade name: William O'Neil India Pvt. Ltd. (Sebi Registered Research Analyst Registration No.: INH000015543). Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729. Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441. Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
a day ago
- Business
- Mint
Top three stocks to buy today, 20 June, as recommended by Ankush Bajaj
On Thursday, 19 June, the Indian stock market spent most of the session moving sideways, lacking strong direction amid mixed global cues and cautious investor sentiment. After opening flat, the indices traded within a narrow band throughout the day, reflecting indecision and consolidation near key levels. Top 3 stocks recommended for today by Ankush Bajaj Why it's recommended: Eicher Motors recently broke out above the upper trendline of a falling wedge pattern on the daily chart, a bullish reversal formation suggesting the end of a prior downtrend. This breakout, combined with the RSI nearing 60, indicates growing bullish momentum. The stock is showing strength with a clean breakout structure, signalling potential for near-term upside. Key metrics Resistance level: ₹5,590 (short-term target) Support level: ₹5,445 (pattern invalidation level) Pattern: Falling wedge breakout on the daily chart RSI: Approaching 60 on daily chart, indicating strengthening bullish momentum Technical analysis: The breakout from the falling wedge pattern adds weight to the bullish outlook. The RSI moving toward 60 supports the idea of momentum building up for a further upside. Price action is strong post-breakout and the stock is attempting to establish a higher base. Watch for increasing volume to confirm breakout validity. Risk factors: Although the RSI is not overbought, a rapid rise could lead to brief consolidations or pullbacks. A drop below ₹5,445 would invalidate the breakout, potentially attracting sellers. Volume follow-through remains crucial for confirming strength beyond the breakout level Buy at: ₹5,493.50 Target price: ₹5,590 Stop loss: ₹5,445 Also read: Why some Indian companies are paying dividends despite posting losses Buy: Bharti Airtel Ltd. (BHARTIARTL);current price: ₹1,877.00 Why it's recommended:Bharti Airtel is showing signs of bullish momentum with the RSI at 58 on the daily chart and trending upward, indicating improving strength in the current move. On the 45-minute timeframe, the stock is forming a triangle pattern and is poised for a breakout. If it sustains above ₹1,880, a sharp move up is anticipated. Key metrics: Resistance level: ₹1,898- ₹1,904 (short-term target) Support level: ₹1,860 (pattern invalidation level) Pattern: Triangle breakout setup on lower timeframe (45-min) RSI: Rising toward 60 on the daily chart, showing a strengthening bullish trend. Technical analysis: The convergence of a rising daily RSI and a triangle breakout setup on the lower timeframe supports a bullish outlook. Sustained movement above ₹1,880 will confirm the breakout, with potential for a quick move toward the ₹1,900+ zone. Price structure remains strong, and buyers appear to be stepping in around key support zones Risk factors: While the RSI is still below overbought levels, a breakout failure below ₹1,860 would invalidate the setup and could lead to short-term weakness or consolidation. Volume confirmation near ₹1,880 is key to validating the breakout attempt. Buy at: ₹1,877.00 Target price: ₹1,898- ₹1,904 Stop loss: ₹1,860.00 Also read | The honest taxpayer's dilemma: When rules become a disadvantage in investing Buy: Mahindra & Mahindra Ltd. (M&M);current price: ₹3,094.80 Why it's recommended:M&M is exhibiting strong bullish momentum, with the RSI at 59 on the daily chart, indicating a steady upward trend. On the lower timeframe, the stock has broken out of a triangle pattern, which suggests the end of consolidation and the start of a new leg higher. If this breakout holds, further upside toward the ₹3,200+ zone is expected. Key metrics: Resistance level: ₹3,200– ₹3,225 (short-term target) Support level: ₹3,028 (pattern invalidation level) Pattern: Triangle breakout on lower timeframe RSI: At 59 on daily chart, indicating bullish momentum building. Technical analysis: The triangle breakout in lower timeframes complements the daily chart's bullish RSI structure. The stock is trading with strong price action and has potential for continuation if it maintains above the breakout level. Momentum indicators support further upside, especially if volume confirms the move Risk factors: While the RSI is rising, a pullback may occur if the price fails to hold above the breakout level. A break below ₹3,028 would invalidate the setup and may lead to short-term downside pressure. Watch for volume confirmation to support the bullish move. Buy at: ₹3,094.80 Target price: ₹3,200– ₹3,225 Stop loss: ₹3,028.00 How the market performed on Thursday The Nifty 50 ended the session 18.80 points or 0.08% lower to close at 24,793.25. The BSE Sensex also closed in the red, slipping82.79 points or 0.10% to finish at81,361.87. Nifty Bank showed mild weakness, closing 251.30 points or 0.45% lower at 55,577.45. The auto index gained 0.52% and the consumption index inched up 0.08%, reflecting some resilience in domestic-facing segments. On the flip side, PSU Bank declined 2.04%, realty dropped 1.60%, and the metal index ended 1.29% down, showing continued pressure in rate-sensitive and cyclical stocks. Among individual gainers, Tata Consumer led with a 2.17% rise, supported by strong institutional activity. Eicher Motors gained 1.86% while M&M added 1.77%, indicating sustained interest in select auto and consumer names. On the losing side, Adani Ports fell 2.52%, while Bajaj Finance declined 2.01% and Adani Enterprises slipped 1.57% as profit-booking emerged after recent gains. Nifty technical analysis: daily & hourly On 19 June the Nifty closed at 24,793.25, down 18.80 points or 0.08%, marking another day of mild weakness. The index traded within a narrow intraday range, hitting a high of 24,863 and a low of 24,733.40, and remained below key short-term moving averages. The 20-day simple moving average (SMA) is at 24,850 and the 40-day exponential moving average (EMA) at 24,572, and Nifty closed in between these key support-resistance zones. Intraday, it also remained below the 20-hour MA (24,826) and 40-hour EMA (24,851), reinforcing a short-term weak structure. However, the broader trend remains range-bound between 24,550 and 25,100, indicating a medium- to long-term consolidation phase. Momentum indicators painted a mixed picture. The daily RSI came in at 51.65, reflecting neutral momentum, while the hourly RSI slipped further to 39, indicating weakening short-term strength. The daily MACD stayed positive at +108, suggesting that the medium-term trend is still intact. On the other hand, the hourly MACD remained negative at –26, confirming short-term bearish undertones. Derivatives data showed an interesting setup ahead of the 20 June weekly expiry. Total call open interest (OI) stood at 18.77 crore, while total put OI came in slightly lower at 17.84 crore, resulting in a negative PE–CE OI differential of -93.37 lakh, which is still bearish. The overall OI trend remains tilted to the bearish side. However, the change in OI reflected a short-term bullish shift, with put OI increasing by 6.41 crore and call OI by only 46.80 lakh, narrowing the PE-CE OI gap by 5.94 crore. This indicates some put writing or short-term bullish positioning intraday. Maximum call OI was seen at the 24,800 strike, which also saw significant fresh additions at the 24,850 level. On the put side, the highest OI and the largest addition were also concentrated at the 24,800 strike. This makes 24,800 a crucial expiry pivot, with both sides actively defending this level. The put-call ratio (PCR) stands at 0.95, reflecting a neutral-to-slightly-bearish bias. Also read: Hindustan Zinc's expansion plan fails to impress as near-term growth stalls Volatility remained muted, with India VIX at 14.25, down 0.14%, indicating low risk perception in the market. The rupee closed weaker at ₹86.47 against the U.S. dollar, adding mild pressure to equity valuations. Crude oil prices remained stable and did not have a significant impact on sentiment. Global cues remained cautious, with geopolitical tensions in the Middle East and a reserved tone from the US Federal Reserve keeping upside limited. On the domestic front, no major triggers are expected ahead of the weekly expiry. Heading into 20 June, the key levels to watch are 24,733 on the downside, which marked the previous session's low, and 24,850–24,880 on the upside, which represents the confluence of resistance from moving averages and the highest OI zone. A breakout above 24,880 could trigger short-covering toward the 25,000 mark, while a breakdown below 24,733 may open the door for a decline toward 24,650–24,600. In summary, Nifty continues to trade in a narrow band, showing signs of short-term weakness while holding on to a medium-term bullish structure. With both calls and puts concentrated at the 24,800 strike, expiry could remain range-bound unless a decisive move occurs. Traders are advised to watch for a breakout above 24,880 or breakdown below 24,733 for directional cues. Until then, expect expiry around the 24,800 level with low volatility favoring range-based strategies. Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
Hans India
a day ago
- Automotive
- Hans India
Trade Setup June 20: Nifty stays flat, but sharp midcap sell-off raises market alarm
The Nifty50 index ended marginally lower for the third straight session on June 19, closing at 24,793 with a 19-point dip. Despite the index remaining rangebound—moving within a narrow 130-point band—concerns escalated over a steep sell-off in the broader market, particularly among midcaps. Nearly 90% of the 100 midcap stocks saw declines, pushing the Nifty Midcap index down by 2%, even as frontline benchmarks remained largely flat to negative. This stark divergence signals brewing caution among investors. Among sectoral indices, only auto managed to close in the green. Eicher Motors and M&M emerged as standout gainers, providing some relief to an otherwise weak session. On the Nifty, top performers included Tata Consumer, Eicher Motors, and M&M. In contrast, Adani Ports, Bajaj Finance, and Shriram Finance weighed down the index with notable losses. In the IT space, Tech Mahindra slipped 2% after Morgan Stanley downgraded the stock to "Underweight." Meanwhile, Wipro rose 2% as the brokerage upgraded it to "Equal-weight." Swiggy shares gained 2% following IIFL Capital's optimistic coverage. The brokerage initiated a "Buy" call on the stock with a price target of ₹535, estimating a potential upside of 46%. Markets remain cautious amid global geopolitical tensions, with participants eyeing signals for a broader trend reversal or continued consolidation.
Business Upturn
a day ago
- Automotive
- Business Upturn
Nifty 50 top gainers today, June 19: Tata Consumer Products, Eicher Motors, Mahindra & Mahindra, Wipro and more
By Aman Shukla Published on June 19, 2025, 15:49 IST In a rangebound session on June 19, Indian equity benchmarks ended slightly lower. The BSE Sensex fell by 82.79 points or 0.10% to close at 81,361.87, while the NSE Nifty slipped 18.80 points or 0.08% to settle at 24,793.25. Despite the muted overall market sentiment, several Nifty 50 constituents posted healthy gains, with Tata Consumer Products, Eicher Motors, and Mahindra & Mahindra leading the charge. Below is a detailed look at the top gainers of the Nifty 50 (as per Trendline) for the day. Nifty 50 Top Gainers on June 19 Tata Consumer Products closed at ₹1,088.3, marking a 2.2% gain. Eicher Motors ended higher by 1.9% at ₹5,493.5. Mahindra & Mahindra rose 1.6% to settle at ₹3,089. Wipro gained 1.5%, closing at ₹265.6. Apollo Hospitals moved up 1.1% to ₹7,009.5. Titan Company advanced 1.1% and closed at ₹3,505.4. Dr. Reddy's Laboratories gained 1.0%, ending at ₹1,326.1. Grasim Industries added 0.7% to finish at ₹2,693.2. Kotak Mahindra Bank increased by 0.7%, closing at ₹2,146.4. JSW Steel closed 0.6% higher at ₹992.7. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Eicher MotorsMahindra & MahindraNifty 50Tata Consumer ProductsWipro Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Mint
3 days ago
- Automotive
- Mint
Eicher, Maruti to TVS Motor: Auto stocks jump up to 2% on reports India may turn to Australia for rare-earth magnets
Auto stocks, including Eicher Motors, TVS Motor Company, and Maruti Suzuki, jumped up to 2% in Wednesday's trade, even as frontline indices remained range-bound. The strength in auto shares followed reports that India is looking to Australia as an alternative source for rare-earth magnets, aiming to reduce its dependence on China, which has imposed restrictions on these critical materials used in automobiles, defence, semiconductors, and other industrial products. Shares of Eicher Motors, TVS Motor Company, and Maruti Suzuki India rose by up to 2% intraday. Other constituents from Nifty Auto index such as MRF, Mahindra & Mahindra, and Bosch also rebounded from their intraday lows and were trading in the green. Sources told CNBC-TV18 that India is considering ramping up imports of rare-earth materials from Australia while also boosting domestic production under the National Critical Minerals Mission. Initiatives may include scaling up output, promoting recycling through circular economy models, and exploring support for mining beyond the existing Production Linked Incentive (PLI) scheme. From June onward, all mining operations will also be required to test their waste material for traces of critical minerals, the report stated citing the above sources. In April, China imposed restrictions on the export of seven key rare earth elements: samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. These elements are essential in producing magnets like neodymium iron boron (NdFeB) and samarium-cobalt (SmCo), which are used in various applications, including EVs. While Washington had anticipated a rollback of these April controls following a 90-day tariff reprieve agreement in mid-May, U.S. officials indicated after trade talks in London last week that Beijing may soon ease rare earth export limits. China remains the dominant force in the global critical minerals supply chain, accounting for roughly 60% of rare earth production and nearly 90% of processing. Since Beijing imposed these restrictions, India has been actively responding through diplomatic channels—including discussions led by the Indian embassy—and by diversifying supply chains. These efforts include sourcing from countries like Australia, increasing local production through Indian Rare Earths Ltd., and fostering innovation in the private sector. Earlier, Commerce and Industry Minister Piyush Goyal had called China's rare earth export restrictions a global "wake-up call," highlighting the risks of over-reliance on a single supplier. Despite India being heavily dependent on China for rare-earth magnets—currently importing nearly 80% of its requirement—the impact on auto stocks has remained limited. This is due to over 95% of vehicles sold in India are still powered by internal combustion engines (ICE). Rare-earth metals are primarily used in hybrid passenger vehicles and electric two-wheelers. However, EV adoption in India is still at a nascent stage, with penetration at just 7% for two-wheelers and 3% for passenger vehicles, according to Nuvama Institutional Equities. Although electric vehicle (EV) sales have grown at a strong compound annual growth rate (CAGR) of 25% between FY23 and FY25, this growth comes off a low base. Therefore, even if sales slowdown, the overall impact on the Indian auto sector is expected to be limited. Most EVs use Permanent Magnet Synchronous Motors (PMSMs), which rely on rare-earth magnets to maintain a stable magnetic field—especially under high temperatures. The use of PMSMs is significantly higher in EVs compared to hybrid or ICE vehicles. According to the report, the average rare-earth magnet usage per vehicle is about 0.8 kg for electric vehicles, 0.5 kg for hybrid vehicles, and only 0.1 kg for ICE vehicles. Thus, the impact of Chinese export restrictions will be highest on electric passenger vehicles, followed by hybrid passenger vehicles, and then electric two-wheelers. Conventional ICE vehicles will face minimal impact. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
