Tuesday 2 July 2013

Auto shares fall post June sales numbers

Shares of automobiles companies are trading lower by up to 2% after most the companies from the sector has reported lower sales numbers in June due to slow down in demand.

The Bombay Stock Exchange (BSE), auto index, the largest loser among the sectoral indices, is down 54 points compared to 11 points fall in benchmark Sensex at 1009 hours.

Among the individual stocks, Hero MotoCorp has dipped 2% at Rs 1,674 on BSE. The company has posted a 6% year-on-year (10% month-on-month) decline in volumes to 502,000 units due to the slowdown in demand and also on account of higher dispatches that had happened in the month of April and May.

Going ahead, the company expects normal monsoon forecast coupled with improving consumer sentiments to revive the growth, says analyst at Angel Broking in a note.

Tata Motors, Maruti Suzuki, Ashok Leyland and Bajaj Auto are also down nearly 1% each on BSE.

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