Bajaj Auto crashes 8%, auto stocks slide on weak September sales; Maruti, M&M among top losers, Hyundai…

According to fresh market updates, Auto stocks came under heavy selling pressure on Thursday, October 1, after September sales numbers from several automakers declined short of expectations, dragging the Nifty Auto index down more than 3 percent. Bajaj Auto and Mahindra & Mahindra (M&M) were among the biggest losers, while Hyundai Motor India bucked the trend after its sales exceeded estimates.

The Nifty Auto index was down 3.15 percent at 25,465.80 around 11:08 am, making it the worst-performing sectoral index. Five auto stocks featured among the top Nifty losers, even as the broader market saw relatively smaller declines. The Sensex was down 113 points, or 0.16 percent, while the Nifty 50 declined 76 points, or 0.33 percent.

Bajaj Auto shares were the biggest loser on the Nifty 50, tumbling nearly 8 percent to Rs 10,021 after its September sales missed estimates. The firm sold 5.38 lakh units during the month, below the CNBC-TV18 poll estimate of 5.79 lakh units, although total sales rose 5 percent from a year earlier.

The firm's domestic sales declined 9 percent year-on-year to 2.94 lakh units from 3.25 lakh units, while exports provided backing with a 32 percent gain to 2.43 lakh units from 1.85 lakh units. Two-wheeler sales rose 5 percent to 4.51 lakh units and commercial vehicle sales increased 9 percent to 86,949 units.

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M&M shares declined 2.6 percent to Rs 2,874.50 after the automaker noted total September sales of 1.15 lakh units, slightly below the CNBC-TV18 poll estimate of 1.17 lakh units. Overall sales were nevertheless up 15 percent year-on-year.

M&M's passenger vehicle sales rose 14 percent to 64,092 units from 56,233 units a year ago, while exports declined 7 percent to 4,019 units. The firm's tractor business noted a sharper slide. Total tractor sales declined 21 percent year-on-year to 52,100 units from 66,111 units, additionally coming in below the CNBC-TV18 poll estimate of 58,667 units.

Escorts Kubota additionally noted a slide in September volumes, with total sales falling 16.7 percent year-on-year to 15,214 units from 18,267 units.

Other auto stocks were additionally under pressure. Eicher Motors declined 2.9 percent, Maruti Suzuki declined nearly 2.5 percent and Tata Motors Passenger Vehicles was down 1.6 percent, placing all three among the top Nifty losers.

Hyundai Motor India was the exception, rising 1.2 percent to Rs 2,055 and emerging as the only gainer on the Nifty Auto index. The automaker noted total September sales of 77,916 units, ahead of the CNBC-TV18 poll estimate of 74,000 units and up 10.8 percent from 70,347 units a year earlier.

Hyundai's exports additionally grew 10.4 percent during the month, compared with expectations of a 10 percent slide.