Two-wheeler majors, Bajaj Auto and Hero Honda, wilted under selling pressure on the BSE today as December 2011 sales figures of automobile companies started trickling in.
While Bajaj Auto came under heavy selling pressure following its December sales numbers that was perceived by the market to be below its expectations, it is not clear what drove the Hero Honda share prices down, though possibly that the two companies are in the same field — two-wheelers — could have been a factor.
However, Tata Motors and Mahindra & Mahindra, which had indicated that their December sales had witnessed a jump YoY, remained stable. The auto ancillaries also witnessed price pressure as lower number of auto sales was expected to rub on their sales as well.
In terms of percentage, Bajaj Auto was the biggest loser with the scrip losing Rs 135.80 or 8.53 per cent to trade at Rs 1,457. Hero Motocorp lost Rs 85.85 or 4.51 per cent to trade at Rs 1,819.
Tata Motors, which had indicated a 22 per cent jump in YoY sales in December, gained Rs 1.35 to trade at Rs 179.75. Maruti Suzuki was another gainer, up by Rs 8.45 at Rs 928.50, though its results sent out mixed signals. While its domestic sales fell by about 13 per cent, its exports jumped by 50 per cent.
Auto ancillary/component companies like Apollo Tyres, Bharat Forge and Cummins India, also shed value, though negligible.