Auto Stocks Hold Strong in Face of Maharashtra Lockdown

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Auto Stocks Hold Strong in Face of Maharashtra Lockdown
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- The state of Maharashtra accounts for 10-11% of total automobile sales in India and is the second-largest market after Uttar Pradesh in the country in terms of volume. However, it generates the most automotive tax in India.

After the lockdown was announced on Sunday night, auto stocks fell on Monday. The rules of the lockdown stipulate a complete lockdown that begins on Friday evening and ends on Monday morning, every weekend until April 30. A Moneycontrol report said, “Such a partial lockdown measure will most likely impact demand for automobiles in the state as Saturday and Sunday generate nearly half of the enquiries and 40 percent of sales for the entire week, according to dealers.”

However, they seem to be holding strong in face of the lockdown. Maruti Suzuki India Ltd. (NS: MRTI ), the country’s largest car seller, is trading up 0.83% at Rs 6,825. Tata Motors Ltd (NS: TAMO ) is up 1.28% at Rs 308.95. Mahindra & Mahindra Ltd. (NS: MAHM ) is up 0.96% at Rs 781.95. Ashok Leyland Ltd. (NS: ASOK ) is up 0.18% at Rs 113.55. Eicher Motors Ltd. (NS: EICH ) is trading flat as of this report.

While passenger and commercial vehicle stocks are showing resilience, the same can’t be said for two-wheeler stocks. TVS Motor Company Ltd. (NS: TVSM ) is down 1.92% at Rs 573.05 while Hero MotoCorp Ltd (NS: HROM ) is down 0.39% at Rs 2,875.65. Bajaj Auto Ltd (NS: BAJA ), however, has bucked this trend and is up 0.75% at Rs 3,625.5.

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  • NITIN PARASURAM @NITIN PARASURAM
    lock down or partial lock down is no use .allow people to work let them take care of them selves .how long u can put lock down .it's waste . vaccine people' and leave them rest to God .by lockdown they will die without money .
    Like 3
  • Bakash Ahamed @Bakash Ahamed
    trade war,Corona,US-China tension,Japan-Korea tens ,Cyber attack,,Brexit deal,lock down...still nifty in green
    Like 2
  • Bakash Ahamed @Bakash Ahamed
    surprise.. nifty still in green... USA future in red.....
    Like 0

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