Auto Stocks Drop After Weak November Sales Report
Auto stocks fell on Monday after a new report showed that car and truck sales were lower in November compared to last year. Major companies like Hyundai Motor and Tata Motors saw big losses.
The Nifty Auto index, which tracks auto companies, dropped by 0.44%, showing that the market was not very positive. Hyundai’s stock fell by 1.2%, reaching Rs 1,838, making it the biggest loser among the top auto companies. Tata Motors also dropped by 0.7%, reaching Rs 811. Other companies like Maruti Suzuki and Mahindra & Mahindra also lost value, with their shares down by 0.4% and 0.3%, respectively. This was due to concerns about weak car sales and too many cars sitting unsold in stock.
The overall market also went down. The BSE Sensex dropped by 275 points (0.35%), and the NSE Nifty fell below 24,600 points.
The fall in auto stocks followed a report from the Federation of Automobile Dealers Associations (FADA), which showed that passenger car sales in November were 13.7% lower than last year, with only 3.22 lakh cars sold. Sales of commercial vehicles (trucks and buses) also dropped by 6.1%, showing that demand is still recovering slowly.