Nirmal Bang's top stock picks in the auto and auto ancillary sector are M&M in four-wheelers and Eicher Motors in two-wheelers.
Auto and ancillary margins may decrease for OEMs due to rising steel and precious metal prices, but scale could mitigate the impact of raw material cost increases.
Nirmal Bang is optimistic about ASK Automotive's collaborations with global leaders and has upgraded Suprajit to Buy based on its manufacturing strategy.
The article provides insights on the preferred stocks in the auto and auto ancillary sector and the factors influencing their performance.