Ashok Leyland, Hero Motocorp to M&M: Auto stocks rise despite E20 row

The Nifty Auto index gained 1% to an intraday high of 26,976.45, with Sensex and Nifty 50 also advancing around 1%, as auto stocks rallied despite the ongoing controversy over the nationwide rollout of E20 ethanol-blended fuel. The government defended the programme, with Petroleum Minister Hardeep Singh Puri dismissing the backlash as fearmongering and Road Transport Minister Nitin Gadkari noting no reported vehicle issues from E20 use. Brokerage Nuvama expects the auto sector to post 22% YoY revenue growth in Q1FY27 (ex-Tata Motors PV) with EBITDA up 10%, with Tata Motors PV leading at 56% revenue growth, followed by Maruti Suzuki at 37% and M&M auto at 20%, while Hyundai Motor India is seen declining 2%.