Share of Mahindra & Mahindra (M&M) slipped over 2% in trade today after the firm said demand and supply for vehicles and tractors is expected to be impacted temporarily amid the Covid-19 lockdowns imposed in various states.
M&M share touched an intraday low of Rs 755.5, falling 2.59% against previous close of Rs 775.60 on BSE.
Market cap of the firm fell to Rs 94,190 crore.
The large cap stock has fallen 2.8% in last 2 days. The share trades higher than 5 day and 200 day moving averages but lower than 20 day, 50 day and 100 day moving averages.
M&M share has gained 92.79% in one year and risen 5.14% since the beginning of this year. 0.50 lakh shares of the firm changed hands amounting to turnover of Rs 3.83 crore on BSE.
The share hit 52 week high of Rs 952 on February 8, 2021 and 52 week low of Rs 367.20 on May 18, 2020.
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"With disruption in the supply of oxygen for industrial use, demand and supply for vehicles and tractors is expected to be impacted temporarily. In addition, on the supply side, global shortage of micro-processors (semi-conductors) used in electronic control unit (ECUs) fitted in different components / aggregates for vehicles continues to pose challenges to the smooth Production Schedules," the auto firm said.
"In view of this, the company is carefully reviewing the demand & supply situation and re-calibrating its operations accordingly while protecting the interest of its customers, dealers and suppliers. The endeavour is to ensure optimal level of inventory at plants & dealerships in order to be prepared for a rebound in demand once the situation returns to normalcy," the firm added.