 "Auto shares mixed post Supreme Court order; M&M down over 4%")
Shares of automobile companies were trading mixed on the bourses after the Supreme Court on Wednesday banned registration of luxury diesel cars until March 31, 2016.
Eicher Motors, Ashok Leyland, Tata Motors, Maruti Suzuki India, Hero MotoCorp and Bajaj Auto were trading higher by up to 2% on the BSE.
Mahindra & Mahindra (M&M) however slipped 4.5% to Rs 1,231 on the BSE in otherwise firm market. The stock dipped 6% to Rs 1,211 in early morning trade ahead of Supreme Court order.
At 11:23 am, S&P BSE Auto index was down 0.18% as compared to 0.78% rise in the S&P BSE Sensex.
The SC order means that sale of diesel SUVS and luxury cars with more than 2,000 cc engine capacity in Delhi will now be illegal in the national capital. CLICK HERE TO READ FULL REPORT.
The broking firm Angel Broking believes that the above proposals would have a negative impact on M&M as its entire utility vehicle portfolio is above 2,000 cc engine and it would be the hardest hit by the above implementations.
“Maruti Suzuki is unlikely to be materially impacted as it has a portfolio of petrol and compressed natural gas (CNG) cars which the customer can opt for in the event of the diesel ban. Further, commercial vehicle players also will not have impact of the above proposals as the increase in the environment compensation charge is usually a pass thru to the consumer,” broking firm said in a client note.
Eicher Motors, Ashok Leyland, Tata Motors, Maruti Suzuki India, Hero MotoCorp and Bajaj Auto were trading higher by up to 2% on the BSE.
Mahindra & Mahindra (M&M) however slipped 4.5% to Rs 1,231 on the BSE in otherwise firm market. The stock dipped 6% to Rs 1,211 in early morning trade ahead of Supreme Court order.
At 11:23 am, S&P BSE Auto index was down 0.18% as compared to 0.78% rise in the S&P BSE Sensex.
The SC order means that sale of diesel SUVS and luxury cars with more than 2,000 cc engine capacity in Delhi will now be illegal in the national capital. CLICK HERE TO READ FULL REPORT.
The broking firm Angel Broking believes that the above proposals would have a negative impact on M&M as its entire utility vehicle portfolio is above 2,000 cc engine and it would be the hardest hit by the above implementations.
“Maruti Suzuki is unlikely to be materially impacted as it has a portfolio of petrol and compressed natural gas (CNG) cars which the customer can opt for in the event of the diesel ban. Further, commercial vehicle players also will not have impact of the above proposals as the increase in the environment compensation charge is usually a pass thru to the consumer,” broking firm said in a client note.
