Cummins India dips as parent company lowers revenue guidance
On account of a slowdown in US orders
Cummins India is trading lower by 4.4% at Rs 430, after its parent company, Cummins Inc., cut its full-year sales forecast.
According to Reuters report, US-based engine maker Cummins Inc cut its full-year sales forecast for 2012 on account of, slowdown in US orders from truck and power generation customers, strong dollar and softer demand in emerging markets
"Order trends in the U.S. for trucks and power generation equipment have softened and demand in Brazil, China and India is not improving as the company had previously expected," the report suggests, quoting Cummins Chief Executive Tom Linebarger.
The stock opened at Rs 435 and hit a low of Rs 423 on the National Stock Exchange. A combined 353,853 shares have changed hands on the counter in early noon trades.