he company has exposure to SUVs, commercial vehicles

Sector: Automobile & Auto Components

is a major player in India's automobile industry and is useful for understanding the relationship between economic growth, consumer demand and stock-market performance. The company has exposure to SUVs, commercial vehicles, tractors and other mobility-related businesses. The automobile sector is particularly sensitive to interest rates, rural demand, commodity prices, financing availability and new-model launches. As a Nifty 500 company, M&M also demonstrates why investors should examine both the underlying industry cycle and company-specific competitive advantages when studying an automobile stock. The company is among the major Nifty 500 constituents. Learning Point: In automobile stocks, track volumes, market share, product launches, average selling prices, margins, rural demand and commodity costs.