Indian auto industry is likely to be hurt by commodity inflation due to Iran war even if the risk of production disruptions seems to be abating, says J.P.Morgan
The Nifty auto index (.NIFTYAUTO) down 9% since the start of the Iran war, underperforming the benchmark Nifty 50’s (.NSEI) 6% drop
J.P.Morgan cuts fiscal year 2027 earnings estimates by 2%-16% across its coverage in auto sector
Brokerage says that commodity costs for Indian auto companies has risen 15%-20% due to the conflict, which will necessitate price hikes of 2.5%-5% across the sector
“The bulk of this hit would be felt in the ongoing June quarter,” says J.P.Morgan, adding that it expects mid/high single digit volume growth across segments, except tractors, in FY2027 and FY2028
Upgrades TVS Motor (TVSM.NS) to “overweight” from “neutral”, Escorts Kubota (ESCO.NS) to “neutral” from “underweight”
Downgrades Apollo Tyres (APLO.NS) to “neutral” from “overweight”
TVSM, ESCO up 0.25% and 2%; APLO down 1%

The off-table confrontation has escalated! Iran's Foreign Minister presented ceasefire conditions and announced a comprehensive management plan for the Strait of Hormuz. Trump, in turn, decisively canceled his trip to Pakistan and maintained the blockade. Will this "power versus power" contest ignite war or lead to a turning point? Feel free to share your views in the comments section.

The off-table confrontation has escalated! Iran's Foreign Minister presented ceasefire conditions and announced a comprehensive management plan for the Strait of Hormuz. Trump, in turn, decisively canceled his trip to Pakistan and maintained the blockade. Will this "power versus power" contest ignite war or lead to a turning point? Feel free to share your views in the comments section.

With neither side willing to back down, is there any hope for a second round of negotiations?

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Nomura Holdings, Inc.

Nippon Life Insurance Co.

Max Auto Industry 3X Leveraged ETN

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First Trust India Nifty 50 Equal Weight

Ps India Port

BUZZ-India's auto stocks to face earnings pressure as Iran war drives up costs, says J.P.Morgan