Nifty Auto Underperforms; Amara Raja Batteries Plunges To 52-Week Low

Indian indices in trade on November 18, 2021 in a volatile session have been dragged lower, with Nifty falling over 1 percent to 17,696 points amid broad based sell-off. Broader markets still underperformed with Nifty Midcap 100 down over 1.72 percent.

All the Nifty sectoral indices traded in the red, with most weakness in the Nifty Auto pack of 2.86 percent, followed by Nifty metal down 2.62 percent at around 12:34 pm.

Nifty Auto Underperforms; Amara Raja Batteries Plunges To 52-Week Low

Within the Nifty Auto, all of the 15 constituents traded in the red falling between 0.7-5%. Among the auto shares that tumbled between 1-5% are stocks like Bajaj Auto, Exide Industries, MRF, TVS Motors, Maruti, Amara Raja Batteries, Hero MotoCorp, Bharat Forge, M&M, Eicher Motors,Tata Motors, Ashok Leyland and Bosch.

Infact on the broad-based weakness, the stock of Amara Raja Batteries hit 52-week low price of Rs. 646.25.

The Federation of Automobile Dealers Associations (FADA) today said that the festive season of 2021 has been the worst for auto dealers in a decade due to the continuing chip shortage situation. Overall vehicle sales for October 2021 registered a decline of 5.33 percent YoY. Also, it provided that total retails continued to decline by 26.64 per cent in comparison to pre-Covid levels as witnessed 2 years hence in October, 2019.

Talking specifically of the auto space, the sector is confronting a slew of problems including chip shortages, steep decline in demand on the back of economic disruption resulting from the pandemic crisis, rise in input costs etc.

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