INSUBCONTINENT EXCLUSIVE:
But this year has been singularly brutal, with the Covid-19 outbreak pummelling an industry that relies on supply chains in East Asia to run
its factories.
The Nifty Auto index has fallen 26.9 per cent this year to date, as against a 21.2 per cent decline in the benchmark Nifty-50
possible halt in production lines can eat into the margins of automotive companies
It closed at Rs 88.95 per share on the NSE on Thursday after declining by more than 10 per cent
falling over 25 per cent since the start of this year.
Stocks of automotive companies had fallen due to a sustained demand downturn in the
domestic market since October 2018.
Margins of automakers were under pressure since plants were running much below full capacity
When macroeconomic cues are not good, sectors like automobile and real estate tend to not do well, said Chokkalingam G, founder of
Equinomics Research - Advisory
This resulted in a value correction for these stocks.