West Asia crisis erasing tax cut gains for India auto sector, says BofA Securities

Costs for India's auto sector have jumped sharply on metal inflation, rising freight and energy costs after West Asia crisis outbreak, says BofA Securities

This is erasing valuation gains from goods and services tax cuts, says brokerage

Estimates 8%-10% downside to street's earnings estimates for passenger vehicles and 3%-5% for two-wheelers and commercial vehicle makers

Brokerage cites downside risks from Middle East export disruptions and potential production issues from gas supply constraints

Reduced demand due to fuel price hikes and economic slowdown from the conflict also a factor - BofA

Nifty Auto index .NIFTYAUTO up 1.1% after U.S. President Donald Trump postponed the bombing of Iran's power grid, allaying fears of a deeper energy shock; benchmark Nifty 50 .NSEI up 0.9%