Auto stocks are trading lower in afternoon trade with Nifty Auto down 2.89%.
The beleaguered sector was unimpressed with the conspicuous absence of measures in the budget to alleviate its stress.
and Hero Motocorp
are the top losers, dropping 4% each and hitting their 2-year and 4-year lows, respectively.
Maruti's June auto sales declined for the 5th consecutive month, and Hero Motocorp witnessed a drop of 12.49% yoy in sales in June 2019.
Tata Motors, Apollo Tyres, Motherson Sumi, Ashok Leyland are all over 3% down, followed by Bajaj Auto and Eicher Motors.
The past months have been difficult for the sector owing to weak demand and liquidity issues. The sector expected some sops from the Union Budget on Friday. The budget did address liquidity concerns in the system but failed to impress the industry with specific measures.
Auto manufacturers are now hoping for a normal monsoon and expect revival in sales as the liquidity crunch gets addressed.