New Delhi: Shares of automobile companies tumbled as much as 2.59 percent on Monday after they posted subdued sales numbers for November.
The country's largest carmaker Maruti Suzuki India saw its shares fall 1.77 percent to Rs 7,121.20 on the BSE and 1.61 percent to Rs 7,129 on the NSE.
Tata Motors ended 0.28 percent lower at Rs 161 on the BSE, while it fell 0.43 percent to Rs 160.80 on the NSE.
Shares of Mahindra & Mahindra (M&M) dropped 1.15 percent to Rs 523.95 in early trade on the BSE. However, it recovered to close 0.79 percent higher at Rs 534.25. On the NSE, the stock settled 0.68 percent up at Rs 530.50.
Hero MotoCorp fell 1.08 percent to Rs 2,405.80 on the BSE and 1.21 percent to Rs 2,404 on the NSE.
TVS Motor Company lost 2.31 percent to Rs 466 on the BSE and 2.59 percent to Rs 464.90 on the NSE.
Bajaj Auto shares also registered 0.82 percent decline to Rs 3,149.90 on the BSE and 0.43 percent to Rs 3,162.45 on the NSE.
Analysts said the fall in shares of auto companies can be attributed to macro challenges faced by the industry. However, the sector might gain in December.
"After a blockbuster festive season, the decline in auto sales numbers in November again failed to reinstate the confidence of investors. Macro challenges continue to plague the industry and is expected to remain subdued in the next couple of quarters," Paras Bothra, President of Equity Research, Ashika Stock Broking said.
"However, things might change in December as consumer demand for PVs (passenger vehicles) typically picks up in the year-end," he added.
M&M on Sunday reported a 9 percent fall in total sales for November at 41,235 units.
Maruti Suzuki India reported 1.9 percent fall in sales at 1,50,630 units, while Tata Motors saw its total sales slump 25.32 percent to 41,124 units.
Bajaj Auto on Monday reported a marginal 0.9 percent fall in total sales at 4,03,223 units for the month.
The country's largest two-wheeler maker Hero MotoCorp reported 15.31 percent decline in total sales to 5,16,775 units, while TVS Motor Company reported 16.64 percent decline in total sales in November at 2,66,582 units.
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Updated Date: Dec 02, 2019 18:26:04 IST