Ongoing truck strike trips auto shares

DALAL STREET SPIKES

Worries over the ongoing truckers' strike pulled the auto shares down. Most of the auto stocks ended in the negative territory.

Tata Motors was down 1.76 per cent to Rs 376.95, Hero Honda Motor closed down 0.80 per cent at Rs 443.65, and Bajaj Auto lost 0.20 per cent to close at Rs 905 amid fears that auto companies' sales might be hit by strike.

Market analyst said that investors have turned cautious towards the auto sector amid prospects of a rise in interest rates and the ongoing truckers' strike.

Over 95 per cent of commercial vehicles are sold through financing, while 80 per cent of cars and 60 per cent of two-wheelers are sold through financing.

Auto stocks, which had a dream run till recently, are witnessing alternate bouts of buy and sell amid volatility in the global crude prices.

On Wednesday, an official from Mahindra & Mahindra said the strike has begun impacting production at its automotive plant at Nasik in Maharashtra. The M&M stock was down 1.66 per cent to Rs 410.80 on the BSE on Friday.