Nifty Auto under pressure; Ashok Leyland sinks over 4%, Tata Motors also drags

Bharat Forge and Tube Investments of India also were among the top losers. Eicher Motors led the marginal gains.

Aug 04, 2021 02:08 IST India Infoline News Service

Bear Versus Bull Silhouette
Nifty Auto stocks were under pressure, shedding 0.6%. Ashok Leyland declined over 4% while Bharat Forge, Tube Investments of India, and Tata Motors also underperformed. Eicher Motors led the marginal gains.

Auto sales were in top gear in July with passenger vehicle volumes improving on the back of a healthy order book and an uptick in enquiries and bookings in urban and rural areas.

However, in the quarterly earnings of auto companies, investors are cautious due to margin compression there. The hike in raw material cost, steel especially, and other costs is affecting auto companies.

Furthermore, investors focus on Wednesday has also shifted on RBI who will begin their three-day monetary policy meet from today onward for deciding key rates. The final print of the monetary policy will be presented on August 06.

The markets led by banking and financial services were bullish but other sectors struggled with FMCG emerging the top bear. At around 2.10 pm, BSE Sensex was trading at 54,372.37 up 549.01 points or 1.02% and Nifty50 at 16,262.05 up 131.30 points or 0.81%.

Nifty Auto was trading at 10,278.60 down 64 points or 0.62%, touching a high of 10,408.00 and low of 10,244.75 during intraday trade on Wednesday.

Ashok Leyland was the top loser at Rs135.35 per piece, down 4.2%. Bharat Forge shed nearly 2% at Rs796.50 per piece. Tube Investments declined 1.55% at Rs1,137.05 per piece.

Heavyweight Tata Motors remained under pressure at Rs299.25 per piece, down ~1.5%. 

Balkrishna Industries, TVS Motor, Hero MotoCorp, Bosch and Maruti were also trading in the red.

Exide India, MRF, Mahindra & Mahindra and Bajaj Auto were marginally lower. 

Eicher Motors led the modest gains at Rs2,657.00 per piece, up 0.3%. Amara Raja batteries was also marginally higher as the Nifty Auto had 2 advances and 13 declines out of 15 stocks.

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