New Delhi, Oct. 6 -- Nuvama Institutional Equities remains positive on the auto sector, with Hyundai Motor India, Tata Motors Passenger Vehicles, Eicher Motors, Samvardhana Motherson International, Minda Corporation, Motherson Wiring India and ASK Automotive among its top picks. The brokerage expects healthy demand, a strong launch pipeline, the Pay Commission impact and reasonable valuations to support the sector, although cost inflation is likely to weigh on margins in Q2 FY27.

Nuvama's coverage remains strongly positive across the auto sector, with Buy ratings dominating across two-wheelers, OEMs and auto-ancillary companies. Among two-wheelers, Eicher Motors, TVS Motor, Bajaj Auto and Hero MotoCorp are all rated Buy.

In the OEM segm...