Shares of seven auto companies dropped by 0.11 percent to 1.5 percent on BSE after PSU OMCs hiked petrol and diesel prices.
Meanwhile, the BSE Sensex was up 46.03 points, or 0.17 percent, to 27,719.63.
Tata Motors (down 0.58 percent), Mahindra & Mahindra (M&M) (down 1.12 percent), Maruti Suzuki India (down 0.11 percent), Eicher Motors (down 1.51 percent), Hero MotoCorp (down 0.16 percent), Bajaj Auto (down 0.74 percent) and TVS Motor Company (down 0.12 percent) declined. Ashok Leyland rose 0.31 percent.
PSU OMCs increased petrol and diesel prices with effect from midnight 15 October 2016/16 October 2016. PSU OMCs announced increase in selling price of petrol by Rs 1.34per litre (excluding state levies) and increase in selling price of diesel by Rs 2.37per litre (excluding state levies).
Hike in fuel prices have negative impact on customers' buying decision of vehicles.
The BSE Auto index had outperformed the market over the past one month till 14 October 2016, rising 0.8 percent compared with Sensex's 2.46 percent fall. The index had also outperformed the market in past one quarter, gaining 11.5 percent as against Sensex's 0.96 percent decline.
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