Auto ancillary stocks were back in focus in the stock market today, with several names posting sharp gains as a key India–US trade development changed the mood on Dalal Street.
Shares of GNA Axles, Delta Autocorp, Sterling Tools, Tube Investments of India, and Sibar Auto Parts moved higher after the United States announced a long-awaited trade deal with India—an update that directly impacts export-linked sectors.
The timing mattered. Markets were still digesting recent volatility, and this announcement gave investors a clear reason to reassess India’s export story.
Market Performance: Auto Ancillaries Lead the Charge
The broader sentiment improved quickly during Tuesday’s trade, February 3. Auto ancillary stocks—known for their strong overseas exposure—saw immediate buying interest.
Key market cues:
- Nifty Auto index opened nearly 3% higher
- Auto component stocks outperformed the broader market
- Export-heavy names saw the strongest traction
The reason was simple. The US is a critical market for Indian auto component makers, contributing 25–30% of export revenues for many companies in this space.
What Changed: India–US Trade Deal Explained Simply?
On Monday, US President Donald Trump said the US will lower reciprocal tariffs on Indian goods from 25% to 18%, following discussions with Prime Minister Narendra Modi.
Along with this:
- An additional punitive 25% duty linked to India’s purchase of Russian crude oil is being removed
- This move clears a major uncertainty that had weighed on Indian equities for months
For exporters, lower tariffs mean fewer cost pressures and better price competitiveness.
Why This Matters for Indian Auto Component Companies?
The new 18% tariff rate gives India a relative edge.
Here’s why:
- Other large Asian economies, including China, continue to face higher tariffs of up to 37%
- Indian manufacturers become more cost-competitive in the US market
- Export-linked sectors attract faster sentiment-driven buying
This shift directly benefited auto ancillaries, where pricing and margins are closely linked to global trade terms.
Trade Talks Were Already in Motion
The deal didn’t appear overnight.
Background developments include:
- Multiple rounds of India–US trade negotiations since March
- Most recent informal talks held in New Delhi in December
- US trade delegation led by the Deputy USTR visited India
Adding to the global trade momentum, India and the European Union had already concluded a long-awaited FTA in January.
Together, these events reshaped how investors looked at India’s export-oriented sectors.
Stocks in Focus: Who Gained How Much?
Auto ancillary stocks posted strong single-day gains across the board.
Notable movers in today’s session:
- GNA Axles surged 20% to ₹425
- Delta Autocorp
- Sterling Tools
- Tube Investments of India
- Sibar Auto Parts
- Balkrishna Industries
- Bhagwati Autocast
- NDR Auto Components
- Sona BLW Precision
- Steel Strips Wheels
- Belrise Industries
- Rolex Rings
Most of these stocks gained between 4.5% and 11.5%, reflecting broad-based buying rather than stock-specific action.
Why Auto Ancillaries Reacted Faster Than Other Sectors?
Auto component manufacturers are deeply integrated into global OEM supply chains. That makes them more sensitive to changes in trade costs.
Key structural factors:
- Higher export intensity than vehicle manufacturers
- Direct linkage to US demand cycles
- Lower dependency on local pricing dynamics
When tariffs move, earnings visibility improves almost immediately for such companies.
Bigger Picture: Sentiment Shift After Budget Volatility
The rally also marks a shift in mood.
Just days earlier:
- Nifty 50 had slipped to a four-month low
- Union Budget surprises had unsettled the market
- Risk appetite was visibly cautious
The India–US trade announcement helped investors look past near-term uncertainty and focus on export-driven themes once again.
Summary: What the Market Is Signaling?
The rally in GNA Axles share price, Delta Autocorp, Sterling Tools, Tube Investments of India, and Sibar Auto Parts share price reflects more than just a one-day move.
In simple terms:
- Lower US tariffs changed export math overnight
- Auto ancillaries benefited due to 25–30% US revenue exposure
- India gained a competitive edge over other Asian exporters
- Market sentiment improved after weeks of pressure
In the stock market today, auto ancillary stocks told a clear story—when global trade conditions ease, export-focused Indian companies react first and fast.
Source: Livemint
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