Shares of automobiles companies are trading lower by up to 3% on the bourses on concerns that the Reserve Bank of India (RBI) is likely to hike the repo rate during its upcoming monetary policy review on December 18.
Ashok Leyland, Hero MotoCorp, Bajaj Auto and Maruti Suzuki India are down 2-3% on the BSE compared to 0.88% fall in benchmark S&P BSE Sensex at 1350 hours.
Tata Motors however, was up 2.5% on value buying after falling nearly 8% in past two trading sessions, while Mahindra and Mahindra up nearly 1% after the company announced that it would be raising the prices of its passenger as well as its commercial vehicles by up to 2%.
Market analyst from a prominent brokerage expects the RBI is likely to hike the repo rate by 25 basis points during its upcoming monetary policy review on Wednesday after a sharp spike in retail inflation and a worse-than-expected contraction in industrial production.
A hike in short term lending rate is likely to impact the interest rates on car and automobile loans further, which could hurt sales.
Among the individual stocks, Ashok Leyland and Hero MotoCorp have skid 3% each at Rs 16.50 and Rs 2,073 respectively. Bajaj Auto was down 2.2% at Rs 1,907, while Maruti Suzuki India dipped 1.5% at Rs 1,692 on the BSE.
Ashok Leyland, Hero MotoCorp, Bajaj Auto and Maruti Suzuki India are down 2-3% on the BSE compared to 0.88% fall in benchmark S&P BSE Sensex at 1350 hours.
Tata Motors however, was up 2.5% on value buying after falling nearly 8% in past two trading sessions, while Mahindra and Mahindra up nearly 1% after the company announced that it would be raising the prices of its passenger as well as its commercial vehicles by up to 2%.
Market analyst from a prominent brokerage expects the RBI is likely to hike the repo rate by 25 basis points during its upcoming monetary policy review on Wednesday after a sharp spike in retail inflation and a worse-than-expected contraction in industrial production.
A hike in short term lending rate is likely to impact the interest rates on car and automobile loans further, which could hurt sales.
Among the individual stocks, Ashok Leyland and Hero MotoCorp have skid 3% each at Rs 16.50 and Rs 2,073 respectively. Bajaj Auto was down 2.2% at Rs 1,907, while Maruti Suzuki India dipped 1.5% at Rs 1,692 on the BSE.
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