Indian auto stocks fuel gains in Nifty 50; Mahindra tops

India's Nifty auto index .NIFTYAUTO trades 1.1% higher, leading gains among 16-major sub indexes

Benchmark Nifty 50 index .NSEI rises 0.4% over U.S.-India trade negotiations optimism and ahead of the Federal Reserve's rate decision .BO

Mahindra and Mahindra MAHM.NS climbs 1.2%, followed by Maruti Suzuki MRTI.NS and TVS Motor TVSM.NS, up ~1% and 1.2%

Auto companies are seeing early signs of demand recovery on improved sentiment ahead of goods and services tax cuts, analysts at Nomura said

The cuts have translated into immediate benefits for buyers and firms are reporting stronger enquiries, surge in bookings and an improved outlook for festive demand - Nomura

MAHM is Nomura analysts' top pick

The auto index is up ~18% so far in 2025 vs 6.5% rise in Nifty 50