The Nifty Auto index is trading marginally lower in the afternoon session on Wednesday’s trade. Selling pressure seen in
TVS Motor, Amara Raja, Maruti, Balkrishna, Hero MotoCorp and Bajaj Auto.
On the slip side, Bharat Forge stock gained over 4%,
Ashok Leyland and Bosch were up nearly 1%, MRF, Eicher and Tata Motors are slightly higher.
On Tuesday’s trade,
Tata Motors shares hit lower circuit after the company said that the ongoing global shortage in semi-conductor chips will lead to a 50% decline in production for Jaguar Land Rover (JLR) in the September quarter.
The auto maker expects the situation will start to improve in the second half of its financial year. However, the broader underlying structural capacity issues will only be resolved as supplier investment in new capacities comes online over the next 12-18 months and so it expects some level of shortages will continue through to the end of the year and beyond, Tata Motors said in the filing.
Further, Bajaj Auto trading slightly lower on the auto index. The two-wheeler maker said it has reduced the price of Dominar 250 bike by Rs16,800 to Rs1,54,176 (ex-showroom Delhi). The newly announced price on Dominar 250 is expected to grow the franchise further by encouraging customers to take their first step into the world of touring, the Pune-based company said.
Meanwhile, benchmark indices trading higher after a volatile start amid weak global cues. The S&P BSE Sensex rose 92 points at 52,953.23 and the Nifty 50 index gained 28 points at 15,845.95.