- Wednesday, March 12, 2025
The Nifty Auto Index was the top sectoral laggard in Tuesday’s trading session with 14 out of its 15 constituents trading in the red
By: Shajil Kumar
TATA MOTORS shares were one of the worst hit after auto stocks came under selling pressure on Tuesday amid concerns over slugging festival season sales.
On the Nifty 50 index on Tuesday, Tata Motors shares declined as much as 6 per cent, while the Nifty Auto Index fell 2 per cent.
This index was the top sectoral laggard in Tuesday’s trading session with 14 out of its 15 constituents trading in the red.
Bajaj Auto, Maruti Suzuki India, and Mahindra & Mahindra were also trading with losses ranging 2-3 per cent.
Today’s drop is being attributed to rising concerns that consumers appear to be holding back on vehicle purchases during the Diwali season.
Analysts told Economic Times that the auto index could drop at least 10-15 per cent from the current levels.
Auto-dealers are sitting with inventory of nearly 800,000 vehicles, valued at over ₹790 billion (£7.24bn).
The Federation of Automobile Dealers Association said that seasonal factors like Shraddh and Pitrapaksha, along with heavy rainfall and a sluggish economy have exacerbated the situation.
Tata Motors recently declared a 12 per cent drop in its total sales for the second quarter. It sold 215,000 units in the second quarter, down from 243,000 units during the same quarter of the previous year. (Agencies)
