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      Auto stocks accelerate as banks slash lending rates

      MoM Team / Mumbai, Jan 02, 2017 03:08 PM IST

        Auto stocks accelerate as banks slash lending rates

        Seven auto stocks rose 1 percent to 7.8 percent on BSE as most of the banks announced slashing their marginal cost of funds based lending rates for various tenors with effect from 1 January 2017.

        Escorts (up 7.8 percent), Tata Motors (up 3.6 percent), TVS Motor Company (up 1.3 percent) and Ashok Leyland (up 1 percent) edged higher. Hero MotoCorp (down 0.5 percent) edged lower.

        Meanwhile, the S&P BSE Sensex was down 36.53 points or 0.14 percent at 26,589.93. The BSE Auto index rose 1.96 percent, outperforming the Sensex.

        Key public sector banks viz. State Bank of India, Punjab National Bank and Kotak Mahindra Bank among others have slashed their marginal cost of funds based lending rates (MCLR) with effect from 1 January 2017.

        Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.

        The S&P BSE Auto index had outperformed the market over the past one month till 30 December 2016, advancing 0.56 percent compared with the Sensex's 0.1 percent fall. The index had, however, underperformed the market over the past one quarter declining 8.88 percent as against the Sensex's 4.45 percent fall.

        Maruti Suzuki India rose 2.52 percent. The company said its total sales fell 1 percent to 1.17 lakh units in December 2016 over December 2015. The company announced the monthly sales volume yesterday, 1 January 2017.

        Bajaj Auto fell 1.43 percent after the company announced that total sales fell 22 percent to 2.25 lakh units in December 2016 over December 2015. The company announced the monthly sales volume data for December during market hours today, 2 January 2017.

        Eicher Motors rose 3.15 percent after the company said its total motorcyles sales surged 42 percent to 57,398 units in December 2016 over December 2015. The company announced the monthly sales volume yesterday, 1 January 2017.

        Separately, Eicher Motors announced yesterday, 1 January 2017 that sale volume of VE Commercial Vehicles, an unlisted subsidiary of Eicher Motors fell 20.04 percent to 4,048 units in December 2016 over December 2015.

        Mahindra & Mahindra (M&M) rose 3.66 percent after the company said its total tractor sales rose 9 percent to 14,047 units in December 2016 over December 2015. The company announced the monthly sales volume during market hours today, 2 January 2017.

        The company's total auto sales declined 4 percent to 36,363 units in December 2016 over December 2015.


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      Source: Capital Market



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