Eight shares from auto sector fell by 0.69% to 4.7% at 14:21 IST on BSE after RBI cut its benchmark lending rate viz. the repo rate by 25 basis points to 7.25% after a monetary policy review today, 2 June 2015, matching market expectations.
The Reserve Bank of India (RBI) made the announcement at 11:00 IST.
Among auto stocks, Ashok Leyland (down 2.23%), Maruti Suzuki India (down 1.4%), Mahindra & Mahindra (M&M) (down 2.15%) and Eicher Motors (down 3.18%) fell.
Bajaj Auto fell 2.41% after total sales fell 2% to 3.45 lakh units in May 2015 over May 2014. The announcement was made during market hours today, 2 June 2015. Bajaj Auto's motorcycle sales dropped 4% to 3.01 lakh units in May 2015 over May 2014. Commercial vehicles sales rose 13% to 43,576 units in May 2015 over May 2014. Exports rose 2% to 1.58 lakh units in May 2015 over May 2014.
Hero MotoCorp declined 3.54% after the company said its total two-wheeler sales fell 5.41% to 5.69 lakh units in May 2015 over May 2014. The announcement was made after trading hours yesterday, 1 June 2015.
Tata Motors slipped 0.69%. Tata Motors' total commercial and passenger vehicles sales including exports rose 5% to 39,496 units in May 2015 over May 2014. Domestic sales of Tata commercial and passenger vehicles for May 2015 were at 34,818 units, unchanged from May 2014. Sales of Tata Motors passenger vehicles rose 21% to 11,138 units in May 2015 over May 2014. The growth trend was driven by the cars segment, specifically the new launches of Zest and Bolt and with positive early response to the new GenX Nano, Tata Motors said after trading hours yesterday, 1 June 2015. The sales of the passenger cars rose 32% to 9,176 units in May 2015 over May 2014. The UV sales fell 15% to 1,962 units in May 2015 over May 2014. In the commercial vehicles, M&HCV sales rose 17% to 10,788 units in May 2015 over May 2014. The light & small commercial vehicle sales dropped 19% to 12,892 units in May 2015 over May 2014, reflecting the industry decline. These impacted the overall commercial vehicles sales for the company in the domestic market which dropped 6% to 23,680 units in May 2015 over May 2014. Exports rose 47% to 4,678 units in May 2015 over May 2014.
TVS Motor Company lost 4.7%. The company's total sales rose 6% to 2.20 lakh units in May 2015 over May 2014. The announcement was made after market hours yesterday, 1 June 2015.
Also Read
The BSE Auto index was down 1.81% at 18,669.16. It outperformed the Sensex, which was down 1.98% at 27,297.12.
Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
The Reserve Bank of India (RBI) kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liabilities (NDTL).
RBI said that since the first bi-monthly monetary policy statement of 2015-16 issued in April 2015, incoming data suggest that the global recovery is still slow and getting increasingly differentiated across regions.
The risks to inflation identified in April, still cloud the picture, the RBI said. First, some forecasters, notably the IMD, predict a below-normal southwest monsoon. Second, crude prices have been firming amidst considerable volatility, and geo-political risks are ever present. Third, volatility in the external environment could impact inflation. Therefore, a conservative strategy would be to wait, especially for more certainty on both the monsoon outturn as well as the effects of government responses if it turns out to be weak, it added.
With still weak investment and the need to reduce supply constraints over the medium term to stay on the proposed disinflationary path (to 4% in early 2018), however, a more appropriate stance is to front-load a rate cut today and then wait for data that clarify uncertainty, the RBI said in a press release. Meanwhile banks should pass through the sequence of rate cuts into lending rates, it added.
Powered by Capital Market - Live News