ITC, Mahindra & Mahindra trade close to their 52-week lows

Allahabad Bank, Gail (India), Reliance Capital, PC Jeweller, Ashoka Buildcon and Indostar Capital were among 11 stocks from the S&P BSE 500 index hitting their respective 52-week lows on the BSE.

Shares of FMCG major ITC and automobile company Mahindra & Mahindra (M&M), from the S&P BSE Sensex, were trading close to their respective 52-week lows on the BSE on Tuesday. These stocks were down in the range of 1 per cent to 2 per cent. In comparison, the S&P BSE Sensex was down 0.26 per cent at 40,381 points at 01:05 pm.

Among individual stocks, ITC was down 2 per cent to Rs 237, quoting close to its 52-week low of Rs 234, touched on September 18, 2019.  M&M was trading at Rs 509, down 1 per cent, and close to its 52-week low of Rs 503, hit on August 14. The stock has fallen 12 per cent in past month on weaker tractor sales.

In November, M&M’s tractor segment’s volumes declined 19 per cent to 21,032 units, over the same month previous year. Within tractors, domestic volumes declined 19 per cent to 20,414 units, while exports were lower by 22 per cent to 618 units.

However, according to industry players and channel participants, tractor industry fundamentals are improving at the margin. There are expectations of positive growth in Q4 and cyclical bounce back in FY21 (after a year of downcycle) given better reservoir levels & no meaningful regulatory headwind, analysts at JP Morgan said in auto sector update.

With government support on agri and rural sector and a healthy reservoir levels due to the above normal monsoon, we expect a good Rabi output in the coming months, the company's management said on December 1, while announcing November sales data.. "This will generate positive sentiment and drive growth, going forward", it said.

Meanwhile, Allahabad Bank, Gail (India), Reliance Capital, PC Jeweller, Ashoka Buildcon and Indostar Capital were among 11 stocks from the S&P BSE 500 index that hit their respective 52-week lows on the BSE today.