Motherson Sumi shares bounce back; rise almost 2%

Shares of auto component maker Motherson Sumi Systems made a comeback today, rising almost 2 per cent, after witnessing a massive sell-off in the last two days following the Volkswagen crisis in the US.
After plunging 5.53 per cent to Rs 228.50 -- its 52-week low -- on the BSE, the stock later saw some recovery and ended the day with a gain of 1.94 per cent at Rs 246.60.
On NSE, shares of the company climbed 1.83 per cent to close at Rs 246.40.
Value-buying at lower levels pulled up the stock.
In two days, the stock has lost nearly 15 per cent.

On the volume front, 23.59 lakh shares of the company changed hands at BSE and over 2 crore shares were traded at NSE during the day.

In a clarification to the BSE today with regard to the Volkswagen scandal, Motherson said there is no material impact on the operational performance of the company, based on market information as of yesterday.
Motherson Sumi Systems yesterday said its supplies to Volkswagen (VW) will not be affected even as the German auto major faces fine of up to USD 18 billion in the US for using devices to falsify emissions data.
The company, which supplies parts such as mirrors, bumpers, dash board and door trims to various auto companies of the Volkswagen group, has seen its shares tank in the wake of the emissions scandal.

"The reaction is over exaggeration," Motherson Sumi Systems CFO G N Gauba told PTI.
Stressing that the company will not be affected by the issue faced by VW, he said, "The emission matter is related to engines and we do not supply any engine parts to VW. Moreover, it is not like a recall due to a part defect."
He further said the company's exposure to the VW brand is only 12 per cent of its net sales, which stood at Rs 34,490.31 crore in the year ended March 31, 2015.
Last Friday, the US Environmental Protection Agency (EPA) accused VW of installing illegal software to cheat emission tests in diesel cars.