Share price of Maruti Suzuki fell over 4% in Tuesday's bearish session in line with other auto stocks that came under heavy selling pressure after industry body Society of Indian Automobile Manufacturers (SIAM) announced sales figures for June.
Maruti stock price touched an intraday low of Rs 5752, falling 4.02% against its last closing of Rs 5,992.65 on BSE. The stock opened at Rs 5,985, also its intraday high. Maruti Suzuki stock price trades higher than 50 and 100-day but lower than 5, 20 and 200-day moving averages. The stock has fallen 7.37% in one week and 21% since the beginning of the year. Market capitalisation of the firm stood at Rs 1.74 lakh crore as of today's session.
Besides Maruti Suzuki, shares of Eicher Motors and Bosch were down 3% each, followed by over 2% drop in Hero MotoCorp, Tata Motors and Motherson Sumi System. Ashok Leyland, Balkrishna Industries, Mahindra & Mahindra, TVS Motor Company, Exide Industries, MRF and Amara Raja shares fell in the range of 1%.
This was on the back of 40% crash in the sale of automobiles in India for June reported by SIAM.
Auto sales crashed 40% after a steeper 75.5% in the first quarter of this fiscal as a broken supply chain impaired the ability of companies to manufacture cars and two-wheelers.
Passenger car segment registered a 58% decline to 55,497 units, while utility vehicles showed a bit more resilience falling 31.2% at 46,201 units. Two-wheelers that account for a majority of automobiles sold in the country in terms of volumes also declined by 38.5% at 10,13,431 units.
"The industry saw peak levels in 2017-18 and we saw an 18-19% decline in 2019-20. This year we will see another reduction of 26-45% across categories. So in just two years, we would have seen a near 50% fall in volumes," says Rajan Wadhera, President, SIAM.
"I am being very optimistic when I say we may return to peak levels by 2023-24. That itself would mean a strong double-digit growth beyond 2020-21 which is not a given right now".
The Nifty Auto index was trading 2.19% or 155 points lower at 6,929 in line with the benchmark NSE Nifty50 index that was 177 points or 1.64% at 10,625.
On BSE, the Auto index was trading at 15,663, down 2.41%, with the BSE Sensex down 676 points or 1.84% lower at 36,016.
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