Auto stocks fall up to 8 pc on dismal Nov sales

Wednesday, December 3, 2008 at 4:12 am

Auto stocks fell for the second straight session today (Dec 2), with the sectoral index dipping by
3.40 per cent on heavy selling after leading car makers Maruti Suzuki and Tata Motors reported sharp slump in November sales.

Mirroring the bearish mood of the Bombay Stock Exchange, auto index, which had lost 4.64 per cent yesterday, fell by 3.40 per cent to 2,127.86 points, after all the 14 components of the index registered losses up to 8 per cent.

Marketmen said apart from sharp fall in sales in November reported by auto majors, dismal manufacturing data added to concerns. They said reports that Mahindra and Mahindra could cut
down production and temporarily shut plants due to slowdown in sales in domestic as well as overseas markets, accelerated selling in auto stocks.

Mahindra and Mahindra stocks fell sharply by Rs 20.65, or 7.59 per cent, to Rs 251.50 as the November sales of the auto major slumped by 39 per cent. Country’s biggest car maker Mauri Suzuki India stocks fell by Rs 21.50, or 4.43 per cent, at Rs 464 after it reported 27.4 per cent drop in car sales during November.

Tata Motors stocks too remained under pressure and lost another Rs 3.65, or 2.75 per cent at Rs 129.20 after company’s November sales dropped by 30 per cent. Amtek Auto fell by Rs 4.45, or 8.48 per cent at Rs 48, Bajaj Auto by Rs 6.95, or 2.26 per cent at Rs 300, Hero Honda by Rs 23.15, or 3.70 per cent at Rs 732.05 and Ashok Leland by 32 paise, or 2.32 per cent at Rs 13.45.

( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)

Auto stocks fall up to 8 pc on dismal Nov sales

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