New Delhi: Auto stocks declined in morning trade on Thursday, with Tata Motors tumbling over 6 per cent, after the US President Donald Trump announced imposition of 25 per cent tariffs on auto imports from April.
Shares of Tata Motors tanked 6.58 per cent to Rs 661.35 on the BSE.
Ashok Leyland dropped 4.60 per cent, Mahindra & Mahindra dipped 1.70 per cent, Bajaj Auto slipped 1.48 per cent Apollo Tyres skidded 1.41 per cent.
The BSE auto index quoted 0.86 per cent lower at 48,286.47.
Among auto components and equipment firms Samvardhana Motherson International slumped 7.59 per cent, Sona BLW Precision Forgings tanked 6.69 per cent, Bharat Forge declined 4.28 per cent and ASK Automotive Ltd went lower by 1.82 per cent.
“Trump’s latest decision to impose a 25 per cent duty on all car imports to the US will impact Tata Motors which exports a significant chunk of JLR cars to the US,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
Trump on Wednesday announced imposition of 25 per cent tariffs on auto imports from April with another 25 per cent tariffs expected to be applied on imports of major automotive parts — engines and engine parts, transmissions and powertrain parts, and electrical components by May.
In the equity market, the 30-share BSE benchmark Sensex traded 427.54 points higher at 77,716.04 despite a weak opening. The NSE Nifty quoted 135.30 points up at 23,622.15, recovering all the opening losses.
PTI
