Nifty today retreat from the day high and traders get in profit booking mode .Auto sector is the worst performer .The sector is already struggling with slowdown in sales . Market expect if Modi government is back in center on 23rd May which would take steps to announce sops for the farm sector allow farmers to spent on buying tractors, cars and two wheelers in the rural market. India stands at 4th position globally in terms of size of automobile industry. As per Society of Indian Automobile Manufacturers (SIAM) this industry faces slow down with 17% decline in passenger vehicle lowest in approx. eight years, after a near-decade of high growth. The Decline in automotive sales sometimes works as an indicator of how the Indian economy is performing. Further Maruti Suzuki and Hyundai sales volumes fell 19% and 10% respectively in April with Maruti announcing a 10% cut in production.
Below are the scrips with most volatile movement today:
Tata Motors: Tata Motors slipped more 7% than to Rs. 175 per share today after dismal quaterly results . Q4 FY19 reported decline in consolidated Net profit by 49% on yoy basis at Rs 1,108 Cr against Rs 2,175 Cr. The r evenue declined to Rs 86,422 crore against Rs 89,928.97.
Motherson Sumi : The share stumble in today trading and fell approx. 5.23%. Reported ealier the steady fall in US Class 8 trucks orders bodes signalled a slowdown in US commercial vehicle (CV) sales. It imapcted growth for the stock as it is one of the Indian componenet maker for the same
Ashok Leyland: The counter gains around 1.35% while the sector is the worst perforemer today .The chennai-based automobile comapny Ashok Leyland rides on the optimsim after news for partnership to help Elon Musk bring the Tesla brand of electric vehicles to India going around today. Ashok Leyland owned by Hinduha group had reported a revenue of INR 6,325 Cr in Q3 of FY 2018-19.