Many experts are of the view that the financial year 2020-21 may be a washout year for the sector. However, they remain positive on the sector for the long-term perspective.
In sync with broader market sentiment, most auto stocks suffered strong losses in intraday trade on May 18.
Shares of Ashok Leyland, Maruti, TVS Motor, Bajaj Auto, Tata Motors and Hero MotoCorp plunged up to 10 percent.
Around 12:00 hours, the BSE Auto index was 4.55 percent down at 12,432 with all stocks in the red.
Auto stocks have been under pressure as the COVID-led disruption has hit the sector hard.
Many experts are of the view that the financial year 2020-21 may be a washout year for the sector. However, they remain positive on the sector for the long-term perspective.
Meanwhile, Indian equity benchmarks suffered strong losses in intraday trade on May 18, with Sensex falling over 3 percent each.
"Markets were hopping on big bang government stimulus measures to boost demand and the eventual peaking of virus infections. Both of these have not happened. Stimulus measures have not enthused the markets, while lockdown had been extended again due to rising infections. This in addition to the insolvency procedures announced by the FM yesterday could lead to an increase in NPAs for banks which is the worst affected today," said Sony Mathews, Senior Market Strategist at Geojit Financial Services.Moneycontrol Ready Reckoner
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Date: May 19
First Published on May 18, 2020 12:06 pm
