Bajaj Auto, TVS Motor dip on export duty drawback cut

Bajaj Auto and TVS Motor Company are trading lower by more than2% each in otherwise firm market in noon deals on reports that the government has cut the export duty drawback from 5.5% to 2% with effect from 10th October 2012. Around 35% of the Bajaj Auto's and 14% of the TVS Motor revenues comes from export. According to Nomura, the investment bank, fiscal 2014 earnings of Bajaj Auto and TVS Motors will be impacted by 6 to 10%, assuming prices of their vehicles remain constant, the Reuters report suggests. Among the individual stocks, Bajaj Auto is trading lower by 2% at Rs 1,722 on the NSE. The stock opened at Rs 1,719 and hit a low of Rs 1,708 so far. A combined 313,189 shares have changed hands on the counter till noon deals on both the exchanges. TVS Motor Company too, down by 2.1% at Rs 43.45 on the NSE. A total 497,002 shares changed hands on the counter so far on the NSE and BSE.