Indian Auto Stocks Trounce Asian Peers on Modi’s Tax Bonanza

Indian auto stocks are beating their Asian peers this month by the widest margin in over a year, and analysts expect the gains to accelerate as tax cuts boost demand.

The Nifty Auto Index is up 8.5% this month, outpacing a 1% gain for Asian peers tracked by the Bloomberg Intelligence Index and the 2.6% advance in the main NSE Nifty 50 Index. Analysts from Goldman Sachs Group to Jefferies Financial Group Inc. and Morgan Stanley, have upgraded their recommendation for some local automakers in September.