Auto shares trade weak after 3-day gain; Hero MotoCorp, Bajaj Auto down 5%

Bharat Forge slipped 12 per cent from its intra-day high of Rs 298 on the NSE

Shares of automobiles companies erased their early morning gains and were trading up to 6 per cent lower on the National Stock Exchange (NSE) on Friday, despite the Reserve Bank of India (RBI) lowering the key repo rate by 75 basis points (bps) to 4.4 per cent to help arrest the economic slowdown in the wake of the coronavirus (Covid-19) outbreak.

The reverse repo rate now stands at 4 per cent, down 90 bps. Repo rate is the rate at which a country’s central bank lends money to commercial banks, and reverse repo rate is the rate at which