Nifty Auto underpressure post Union Budget and monthly sales announcement; Tata Motors drags, TVS Motor gains

1 Feb 2022 , 02:40 PM

Nifty Auto saw downward movement after Finance Minister Nirmala Sitharaman announced the Union Budget 2022-23 in the Lok Sabha on Tuesday. The Index fell nearly 2% before trimming losses in the afternoon. TVS Motors Company Limited led the gains while Tata Motors emerged the top laggard.

Auto Stocks were also in focus as Tata Motors, Maruti Suzuki, Mahindra & Mahindra, Bajaj Auto, TVS Motor Company, Ashok Leyland, Eicher Motors, Escorts, and Hero MotoCorp release their monthly sales numbers for January 2022.

Volatility was high on Street as Sensex again surged 900 points after slipping into the red. At around 2.45 pm, BSE Sensex was trading at 58,895.24 up 881.07 points or 1.52% and Nifty50 at.17,584.80 up 244.95 points or 1.41%. Nifty Auto was trading at 11,630.30 down 73.20 points or 0.63% touching a high of 11,771.10 and low of 11,427.30 during intraday trade on Tuesday.

TVS Motor Company was 2.8% higher at Rs623.10 per piece despite decline in Janauary sales. The company on Tuesday reported a 13.14% decline in total sales to 2,66,788 units in January. The Chennai-based company had sold 3,07,149 units in the same month last year.

Bosch and Bharat Forge also gained around 1.6% each while Amara Raja Batteries was also over 1% higher. 

Tata Motors total domestic sales grew by 26% to 72,485 units in January 2022 as against 57,649 units in January 2021. However the company stock was bearish at Rs508.30 per piece down 1.8% on quarterly earnings. Tata Motors Limited posted consolidated loss of Rs1,516cr in the quarter ended December 31, 2021 against profit of Rs2,906.5cr in Q3FY21, revenue fell to Rs72,229.3cr from Rs75,653.8cr yoy.

Ashok Leyland also shed 1.4% while Mahindra & Mahindra was also nearly 1% lower. 

Maruti Suzuki was 0.7% lower after car sales drop slightly to 154,379 units in January 2022. Bajaj Auto also was 0.665 on the downside after sales decline by 15 percent with 3,63,443 units sold in January.