The automobile stocks are trading low on a sustained selling pressure
The automobile stocks are trading low on a sustained selling pressure:- The automobile stocks are trading low on a sustained selling pressure following a sharp hike in the prices of petrol and diesel prices. The broad market is also not going in a positive direction with many stocks from across different sectors going in a negative territory amid all the cautious moves by investors.
Prevailing situation in the market
The Asian markets were much weak, the European markets are low too, with investors looking forward to some important results and keeping an eye upon the European Central Bank’s meeting, which is scheduled later in this week.
The Sensex is currently down with 123.88 points or 0.45% and is at 27,549.72, while the Nifty50 is down by 54 points or 0.62% and is currently at 8529.40
Companies namely the Eicher Motors, Mahindra & Mahindra as well as Hero Motocorp are currently down by 2% – 2.8%, Baja Auto is declining at 1.5%, Maruti Suzuki is down by 1% and Tata Motors is sliding low by 0.75%.
However, TVS Motor is down marginally only, while Ashok Leyland is trading high by nearly 1%, in the trend.
Reason for the drop in Sensex
All the state-run oil marketing companies increased their petrol and diesel prices from the midnight of October 15. While the price of petrol was hiked by Rs 1.34 per litre, diesel price were increased by Rs 2.37 per litre. The PSU companies in a statement said that the hike in prices of petrol and diesel is due to the ongoing level of the International product prices of Petrol and diesel and due to the impact of the currency exchange rate.
Meanwhile, the Hindustan Petroleum Corporation, BPCL and Indian Oil Corporation are off their hikes after staying firm earlier on Monday. Hindustan Petroleum Corporation is down by 0.4% and BPCL is down by 0.6% in the negative territory, while Indian Oil Corporation is slightly trading high.