Auto stocks in reverse gear on steep petrol price hike

Auto stocks ran out of fuel after the Congress-led UPA government recent announced Rs 7.50 hike - the steepest to date - in petrol prices, thereby adding worries of the sector already surrounded with uncertainty about future sales and rising raw material costs on account of depreciating rupee. Since the government keeps increasing petrol prices while maintaining near status quo on the prices of other fuels, the difference between petrol and diesel prices has gone up to Rs 25 per litre. Following the hike, a litre of petrol will now cost Rs78.16 in Mumbai, Rs73.14 in Delhi, Rs77.53 in Kolkata and Rs 77.05 in Chennai. However, there could be more bad news in the offing as the government may announce a slash in subsidies on diesel, kerosene and LPG by Friday.

Maruti Suzuki India is currently trading at Rs 1126.45, down by 24.80 points or 2.15% from its previous closing of Rs 1151.25 on the BSE. The scrip opened at Rs 1125.00 and has touched a high and low of Rs 1132.20 and Rs 1116.90 respectively. So far 21410 shares were traded on the counter.

Bajaj Auto is currently trading at Rs 1462.00, down by 25.10 points or 1.69% from its previous closing of Rs 1487.10 on the BSE. The scrip opened at Rs 1460.00 and has touched a high and low of Rs 1478.00 and Rs 1456.55 respectively. So far 8708 shares were traded on the counter.

Mahindra & Mahindra is currently trading at Rs 639.00, down by 4.95 points or 0.77% from its previous closing of Rs 643.95 on the BSE.The scrip opened at Rs 651.00 and has touched a high and low of Rs 651.00 and Rs 638.45 respectively. So far 21898 shares were traded on the counter.

Hero MotoCorp is currently trading at Rs 1812.50, down by 13.70 points or 0.75% from its previous closing of Rs. 1826.20 on the BSE. The scrip opened at Rs 1823.00 and has touched a high and low of Rs 1823.00 and Rs 1802.00 respectively. So far 9220 shares were traded on the counter