Nifty Auto joins markets bear, index sheds 1.75%; Heavyweights M&M and Tata Motors weigh down

Motherson Sumi dropped over 3.5%. Mahindra & Mahindra declined ~3%. Tata Motors and TVS Motor Company also shed around 2.5% each.

Mar 24, 2021 01:03 IST India Infoline News Service

Bear Market
Nifty Auto Index was under extreme pressure on Wednesday, tracking weak markets. The Index fell 1.75% markets as heavyweights like Mahindra & Mahindra and Tata Motors weghed in.

The overall markets fell due to rising Covid-19 concerns. Asian stocks and European equity futures declined Wednesday after setbacks to the recovery from the pandemic weighed on U.S. shares and crude oil, and drove haven trades into Treasuries and the dollar.

Auto companies suffered similar fate during Wednesday's trade. At around 1. 45 pm, Nifty Auto was trading at 10,010.50 down 177.15 points or 1.74%, touching a low of 9,991.70 during intraday trade on Wednesday.

Many auto companies like Maruti Suzuki India Limited and Hero MotoCorp have announced price hikes already and many more or likely to follow the suit.

The input costs are rising and companies will have to take price hikes to protect their profit margins. Maruti has said the price increase will vary for different models, while Hero has maintained that hikes across its range of two-wheelers will be up to Rs2,500.

Hero MotoCorp was at the top of sectorial trade, flat at Rs3,065.80 per piece. Balkrishna Industries also traded flat. Maruti shed 1.28% at Rs7,094.00 per piece. 

Motherson Sumi dropped 3.57% at Rs203.95 per piece to emerge the biggest laggard. Mahindra & Mahindra declined ~3% at Rs819.70 per piece. Exide India was 2.59% on the downside at Rs184.60 per piece,

Tata Motors and TVS Motor Company also shed around 2.5% to trade at Rs299.75 per piece and Rs565.00 per piece respectively. 

Amarraja Batters, MRF, Bharat Forge and Bajaj Auto also shed in the vicinity of 1.5% on Wednesday. Ashok Leyland and Eicher Motors also were over 1% down. Bosch was also trading in the red.

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