Hero Honda plunges 7.5% on report of Honda selling stake

MUMBAI: The largest two-wheeler maker Hero Honda Motors today plunged over 7 per cent following reports in a section of the media that its Japanese partner Honda may sell a part of its stake in the domestic two-wheeler company.

Shares of Hero Honda settled at Rs 1,811.85, down 7.46 per cent on the Bombay Stock Exchange. The counter plummeted 7.8 per cent to touch a month's low of Rs 1,805.10 during the day's trade.

Similarly, the stock fell 7.30 per cent to settle at Rs 1808.25 on the National Stock Exchange.

"Investors dumped Hero Honda shares on the reports of Honda planning to sell some of its stake," Bonanza Portfolio assistant vice-president Avinash Gupta said.

On the volume front, 14.93 lakh shares of the company were traded on both the bourses.

Hero Honda was the second biggest loser on the 30-share benchmark Sensex after its peer Maruti Suzuki which fell 12.31 per cent following a surprise over 20 per cent drop in its first quarter numbers.

Meanwhile, the Sensex closed at 18,020.05, down 0.61 per cent on fears of the RBI hiking interest rate tomorrow.