Auto sales fail to enthuse stock markets

Mumbai: Auto stock fell as October month sales data hit market on Friday which were not as per market expectations. Earlier last month auto stocks had rallied on hope of better sales during the festival season, the NSE Auto index had gained close to 13 per cent in October.

But there was disappointment as first set of auto sales number hit market on Friday.

But for Maruti other automobile companies reported  decline in sales in October month year on year.  Hyundai, Mahindra, Tata Motors, Toyota Kirloskar and Honda Cars reported decline in sales, though their monthly sales improved month on month from September 2019 due to festival season demand.

Auto makers, however, saw a pick up in sales during the Diwali season.

BSE Auto Index fell 0.75 per cent while NSE Auto Index fell 0.67 per cent. The auto ancillaries makers were mixed though.

The losers on NSE included TVS Motor (-3.92 per cent), Mahindra & Mahin-dra (-2.71 per cent), Eicher Motor (-2.39 per cent), Tata Motors (-1.52 per cent), Bajaj Auto (-0.53 per cent).

Maruti stock gained 0.56 per cent on reporting improvement in monthly sales closing at Rs 7616.25 on the BSE.

Amara Raja Batteries and Exide Industries gained 1.41 per cent and 1.19 per cent respectively, other gainers were Bharat Forge (0.85 per cent) and Bosch (0.42 per cent).