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Auto Stocks Today: Shares of automobile makers and auto component companies came under sharp selling pressure on Wednesday, dragging the Nifty Auto index into the red for the fourth consecutive session amid heavy trading volumes.

The Nifty Auto index slipped more than 0.6 per cent to around 27,316 by 1:20 pm. Earlier in the session, the index had fallen nearly 2 per cent to a one-month low of 27,013.75, reflecting broad-based weakness across the sector.

Among the major laggards, Samvardhana Motherson International declined over 2 per cent to Rs 117.09, its lowest level so far this week. Shares of UNO Minda also dropped nearly 2 per cent during intraday trade.

Auto component names such as Bosch, Sona BLW Precision Forgings and Bharat Forge were trading nearly 1 per cent lower, tracking the broader weakness in the auto pack.

Two-wheeler stocks were among the worst hit. TVS Motor Company, Hero MotoCorp and Exide Industries slipped more than 1 per cent each.

Hero MotoCorp saw sharper losses earlier in the day, falling over 5 per cent after global brokerage Jefferies downgraded the stock to ‘Underperform’ from ‘Hold’ and cut its target price to Rs 4,950 from Rs 5,550.

Jefferies cited a sharp drop in Hero MotoCorp’s domestic two-wheeler market share, which it said has fallen to a 25-year low of 28 per cent during April–November. The brokerage flagged demand shifting away from entry-level motorcycles and continued weakness in the 110–125 cc segment as key concerns.

Shares of Bajaj Auto, Mahindra & Mahindra, Tata Motors Passenger Vehicles and Maruti Suzuki were also trading in the red, albeit with marginal losses. Eicher Motors, the maker of Royal Enfield motorcycles, also slipped in intraday trade.

Defying the broader sectoral weakness, Ashok Leyland shares gained more than 3 per cent to hit a fresh 52-week high, supported by optimism around the medium-term outlook for the commercial vehicle space.

Brokerages remain constructive on the CV segment. JP Morgan initiated coverage on Tata Motors with an ‘Overweight’ rating and a target price of Rs 475, citing expectations of a modest recovery in the Indian commercial vehicle cycle after three years of muted growth. The brokerage also pointed to pricing discipline among large players, margin and ROCE expansion, and Tata Motors Commercial Vehicles’ acquisition of Iveco, which it believes could be value-accretive as the European truck cycle bottoms out.

Similarly, BofA Securities initiated coverage on Tata Motors with a ‘Buy’ rating and a target price of Rs 475, highlighting a rebound in India and EU truck cycles, steady market share, margin discipline and strong free cash flow generation prospects.

While brokerages remain selectively positive on commercial vehicle makers, near-term sentiment across the auto space remains cautious, weighed down by slowing two-wheeler demand, market share pressures and valuation concerns in select stocks.