Auto index hits 52-wk low; Maruti Suzuki, Escorts down over 15% in 1-month
Escorts, Force Motors, Maharashtra Scooters, VST Tillers, Eicher Motors, Atul Auto, Amara Raja Batteries, Exide Ind, Motherson Sumi Systems and Minda Ind were down 10% to 28% in past one month.
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Shares of automobile companies were trading weak for the sixth straight session on concerns of a slowdown in demand due to rising crude oil and commodity prices, especially petrol and diesel.
The Nifty Auto index (down 1% at 9,903) and the S&P BSE Auto index (down 1% at 22,168) hit their respective 52-week lows in intra-day trade on Tuesday. In past one month, the auto indices have underperformed the market by falling 10% as compared to a 5.5% decline in the benchmark indices.
Escorts, Force Motors, Maruti Suzuki India, Maharashtra Scooters, VST Tillers Tractors, Eicher Motors and Atul Auto from automobiles and Setco Automotive, Amara Raja Batteries, Exide Industries, Motherson Sumi Systems and Minda Industries from auto ancillaries sector have seen their market price declined by in the range of 10% to 28% during the month.
The Nifty Auto index (down 1% at 9,903) and the S&P BSE Auto index (down 1% at 22,168) hit their respective 52-week lows in intra-day trade on Tuesday. In past one month, the auto indices have underperformed the market by falling 10% as compared to a 5.5% decline in the benchmark indices.
Escorts, Force Motors, Maruti Suzuki India, Maharashtra Scooters, VST Tillers Tractors, Eicher Motors and Atul Auto from automobiles and Setco Automotive, Amara Raja Batteries, Exide Industries, Motherson Sumi Systems and Minda Industries from auto ancillaries sector have seen their market price declined by in the range of 10% to 28% during the month.
Brent crude climbed above $80 a barrel on Monday, its highest level in nearly four years after OPEC and its allies signalled less urgency to boost output, despite U.S. pressure to temper prices.
“The rising crude oil and commodity prices especially petrol and diesel and frequent policy changes are the key concerns for the growth of the auto industry,” according to CARE Ratings.
“The rising crude oil and commodity prices especially petrol and diesel and frequent policy changes are the key concerns for the growth of the auto industry,” according to CARE Ratings.