Big Moves in Auto Stocks : Tata Motors Ltd shares corrected sharply from Rs 1,100 level, said Kranthi Bathini, Director — Equity Strategy, WealthMills Securities. “Now investors do have a decision to make when it comes to the EV (electric vehicle) space. With the listing of Hyundai Motor India Ltd, for institutional investors, India’s automobile theme now comes with one more OEM (original equipment
manufacturer) option. Hyundai Motors have more robust portfolio compared to Tata Motors hence fresh flows are entering Hyundai Motors. Moreover, Hyundai’s finances are extremely appealing. There is no fresh money flowing into Tata Motors at this time and its song has been facing heat,” the market expert told Business Today Wednesday
Tata Motors also looks quite attractive in terms of valuations. As far as the JLR (Jaguar Land Rover) portfolio is concerned, we are seeing signs of demand picking up in the China’s market. Investors with a long-term view and higher risk appetite can accumulate Tata Motors. Those with moderate risk appetite can add Hyundai Motor. At this point of time, the investors have a choice to make between Tata Motors and Hyundai Motors,” he said. Tata Motors derives nearly 67 per cent of its top line from Jaguar Land Rover, and JLR sources close to 27 per cent of volumes from China. Tata Motors quoted 0.11 down at Rs 680.85 while Hyundai added 3.71 per cent to the value of Rs 1,877.25 level.
The market specialist went on to remain ‘bullish’ for the automobile sector. “We are very bullish relative to the auto industry. Demand in the entry-level segment is very slow right now while at the high- and the mid-end segments, there’s a huge demand and that is the segment where the OEMs have to concentrate going forward,” Bathini said. Back home, Indian equity indexes
ended marginally lower today as a drop in IT and pharma shares offset a rise in banks and financials. The 30-share BSE Sensex pack lost 28 points or 0.04 per cent to settle at 75,939, while the broader NSE Nifty index fell 12 points or 0.05 per cent to end at 22,933. The broader indices (mid- and small-cap shares) bounced.
Nineteen of the 19 sector gauges — compiled by the NSE — settled in the red. The NSE platform has underperformed by adducting Nifty IT and Nifty Pharma with a maximum of 1.30 and 0.71 per cent respectively. On the other hand, Nifty Bank and Nifty Financial Services gained 0.98 per cent and 0.80 per cent, respectively.
Market breadth was strong, with 2,782 stocks rising and 1,182 falling on BSE.