Two-wheeler heavyweights Hero MotoCorp, Eicher Motors fail to shine today ahead of monthly sales data

Ahead of monthly auto sales, the Nifty Auto index traded flat. The two-wheeler heavyweight Hero MotoCorp and Eicher Motors fell most, dragging the index down. Joining the camp Baja Auto shied away from being in the negative unlike its peers.

On the last day of financial year, Nifty Auto was trading at 9,904.95, at noon, up 39.95 points or 0.4%, hitting a day’s high of 9,946.95.

In the previous session, the index closed at 9,865 or around 1 per cent up.

In the early hours of trading, Eicher Motors was at day's high at Rs 2646 per share, whereas it closed down around 1.5 per cent at Rs 2604 per share. Similarly, Hero MotoCorp was also at day's high at around 10.05 am at Rs 2976 per equity share. However, it failed to hold the level and fell by over 1.5 per cent to close at 2916 at the end of today's trading session.

However, Bajaj Auto remained almost flat. The overview on chart as per the data available on BSE suggests that the stock made significant gain today as against Tuesday's low. It closed Rs 3683 per share up 0.1 per cent.

The auto stocks tried holding the positive position with only six scrips advancing and nine scrips declining by the end of the session.

Hero MotoCorp being the first major two-wheeler company to hike its vehicles prices from April 1 amid rising input cost. Analysts predict that other auto and auto ancillary companies will follow suit and raise prices. Maruti was among the first car manufacturers to increase the prices.

In the sector, investors' focus has now shifted to March monthly sales data which will be announced by major auto companies in the first week of April 2021. The demand has started picking up and the sales are likely to grow year-on-year basis, as analysts expect.

(Authored by Vaibhav Bansode)