Auto stocks down; Eicher Motors hits 52-week low

Eicher Motors hit a 52-week low of Rs 23,072.75, down 6.8 per cent in intraday trade.

Auto shares were in focus on Wednesday, with the Nifty Auto index slipping 1.5 per cent in intraday trade led by a fall in shares of Eicher Motors, Maruti Suzuki and Mahindra & Mahindra.

Eicher Motors hit a 52-week low of Rs 23,072.75, down 6.8 per cent in intraday trade. The commercial vehicle sales by the company in September 2018 was up at 6,663 units against 6,083 units in the year-ago period. Royal Enfield sales also climbed 2 per cent at 71,662 units versus 70,431 units.

“Royal Enfield’s manufacturing facility at Oragadam has been operational since Saturday, September 29, 2018, after a part of the workforce had not reported for duty since September 24th. We expect to reach regular levels of production in a phased manner. Our manufacturing facility at Vallam Vadagal continues to operate and deliver to its full capacity.” Eicher said in a regulatory filing on Tuesday.

Maruti Suzuki too hit a near 52-week low of Rs 7,211.15 in intraday, slipping 3.4 per cent, after the company recalled Super Carry vehicles to inspect for a possible defect in fuel pump assembly.

“640 vehicles in the domestic market manufactured between January 20 and July 14, 2018, will be covered in this recall campaign.” the car maker said in a BSE filing.

That apart, analysts blame the fall on September sales figures, which they believe, were below expectation.


“The main reason why the stocks have performed badly on Wednesday is the sales numbers for the industry for the month of September, which were below market expectation,” said Arun Kejriwal, founder, Kejriwal Investment Services.

Share prices as on 2:02 pm

First Published: Wed, October 03 2018. 14:01 IST

View Source: https://www.business-standard.com/article/markets/auto-stocks-down-eicher-motors-hits-52-week-low-118100300443_1.html

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