Samvardhana Motherson plunges 7% today amid high volumes. Here's why

The stock fell 6.93 per cent to hit a low of Rs 64.40 on BSE amid high volumes. Against a two-week average of 8.98 lakh shares, a total of 14.42 crore shares had changed hands on BSE by 9.35 am. On NSE, a total of 4.38 crore shares changed hands, data showed.

As per a media report, Japan-based Sojitz Corp had on Monday said it would sell 1.9 per cent stake in auto component company through a block deal.

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The floor price for the Samvardhana Motherson block deal, as per the media report, was Rs 64.36 per share. The deal size deal size for the Sojitz Corp share sale was fixed at Rs 824 crore, the reported suggested.

Samvardhana Motherson International (erstwhile Motherson Sumi) primarily serves the global passenger vehicle (PV) industry with wiring harnesses, vision systems (mirrors) and plastic body parts as key product lines.

ICICIdirect recently dropped coverage on this stock.

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"Given the macro uncertainty in global markets vis-à-vis a more stable demand environment domestically, we are dropping coverage on SAMIL (which is a play on a recovery in global automobile space) and would advise investors to switch their holding to Motherson Sumi Wiring India (MSWIL)," the company said in a September 29 note.

The company will report its quarterly results on November 10.