Auto stocks down on profit-booking ahead of Union Budget 2011
Auto stocks, led by two-wheeler giant Hero Honda, fell by nearly 4 per cent on the Bombay Stock Exchange today ahead of the Union Budget 2011-12.
By PTI |
MUMBAI: Auto stocks, led by two-wheeler giant Hero Honda, fell by nearly 4 per cent on the Bombay Stock Exchange today ahead of the Union Budget 2011-12.
Shares of Hero Honda fell by 3.7 per cent to an early low of Rs 1,444.20 on the BSE, thus becoming the top loser among the Sensex bluechip firms.
Defying the broader market trend, auto stocks were trading weak in the early part of the session. Tata Motors was another laggard, shedding 3.35 per cent to a low of Rs 1,068.
According to market players, the sector is expecting an excise duty hike of up to 2 per cent in this Budget. The hike in excise duty will be passed on to consumers, they said.
Bajaj Auto, Maruti Suzuki and Mahindra & Mahindra (M&M) were also reeling under pressure. Profit-booking dragged Bajaj Auto's shares down by 1.93 per cent, while the country's largest car-maker Maruti Suzuki slipped by 1.08 per cent and M&M by 1.68 per cent.
Auto stocks also declined on fuel price hike worries, besides concerns that the government may rollback the fiscal stimulus by hiking excise duty in the Budget, an analyst added.
Meanwhile, the BSE barometer index Sensex was quoting at 17,859.74, up by 158.83 points, at 1055 hrs.
Shares of Hero Honda fell by 3.7 per cent to an early low of Rs 1,444.20 on the BSE, thus becoming the top loser among the Sensex bluechip firms.
Defying the broader market trend, auto stocks were trading weak in the early part of the session. Tata Motors was another laggard, shedding 3.35 per cent to a low of Rs 1,068.
According to market players, the sector is expecting an excise duty hike of up to 2 per cent in this Budget. The hike in excise duty will be passed on to consumers, they said.
Bajaj Auto, Maruti Suzuki and Mahindra & Mahindra (M&M) were also reeling under pressure. Profit-booking dragged Bajaj Auto's shares down by 1.93 per cent, while the country's largest car-maker Maruti Suzuki slipped by 1.08 per cent and M&M by 1.68 per cent.
Auto stocks also declined on fuel price hike worries, besides concerns that the government may rollback the fiscal stimulus by hiking excise duty in the Budget, an analyst added.
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Meanwhile, the BSE barometer index Sensex was quoting at 17,859.74, up by 158.83 points, at 1055 hrs.
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