Equity benchmark indices opened higher on Monday, however, it failed to hold momentum after media reports said that Viral Acharya has resigned as the RBI Deputy Governor. Also, crude prices jumped amid US-Iran tensions while Asian stock markets remained largely tepid, weighing on the domestic markets.
The Sensex declined 78 points at 39,116, with the Nifty slipped 19 points to trade at 11,706 levels. Among the 50 stocks in the Nifty index, 21 were trading in the green, while 28 were in the red.
The Auto stocks declined on the back of slowdown in the automobile sector. The slowdown is having a cascading effect on component makers, with large listed ancillary firms witnessing their market capitalisation shrink on account of reduced orders, piled-up inventories, and an uncertain future.
The Nifty Auto index fell 1% as selling pressure was seen in TVS Motor, Motherson Sumi, Bajaj Auto and Hero MotoCorp.
Shares of Tata Motors, Ashok Leyland, Maruti and Eicher were down in the range of 1-2% respectively on the auto index. Shares of TVS Motors and Motherson Sumi, which dropped 3.5% each were leading the index’s fall.
Shares Hero MotoCorp slipped 2% after a media reports said that the company is looking at exporting its excess BS-IV stock to neighbouring countries as it plans to launch the BS-VI compliant vehicles in the country at the earliest to ensure a smooth transition before the new emission norms come into effect from April 1, 2020.