Auto stocks, led by Tata Motors, fell by over 2% on the BSE today ahead of the Union Budget as investors feared higher taxes on the sector.
Shares of Tata Motors fell 2.21% to an early low of Rs 283 on the BSE, thus becoming the top loser among the Sensex blue-chip firms.
The broader market, however, was trading higher.
Maruti Suzuki was another laggard, shedding 2% to a low of Rs 1,338. Market players said there might be an increase in excise duty, besides a new levy on diesel cars in this Budget.
Bajaj Auto, Hero MotoCorp and Mahindra & Mahindra (M&M) were also reeling under pressure.
Profit-booking dragged Bajaj Auto's shares down by 1.27%, while Hero Moto slipped by 1.74% and M&M was down 1.38%.
Meanwhile, the BSE barometer index Sensex was quoting at 17,765.52, up by 89.67 points, at 1030 hrs.