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

Bank of America Corp -0.32%

Bank of America Corp

BAC

52.54

-0.32%

** 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%


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