Shares of major automobile majors took a hit as investors turned cautious of the Supreme Court’s verdict on BS-III vehicles.
Hero MotoCorp, TVS Motor, Ashok Leyland, among others fell between 0.29 percent and 5 percent intraday.
The Supreme Court on Wednesday banned the sale of BS-III vehicles from April 1, 2017 onwards. The decision is significant as the industry is said to have an inventory of 8.2 lakh such vehicles, data available from SIAM has indicated.
The combined inventory value is seen at Rs 12,000 crore. Breaking down the inventory pool, there are 96,000 commercial vehicles, over 6,00,000 two-wheelers, and 40,000 three-wheelers.
At 14:18 hrs, Hero MotoCorp was quoting at Rs 3,219.80, down 3.25 percent.
Mahindra and Mahindra was quoting at Rs 1,266.90, down 0.76 percent.
Meanwhile, TVS Motor Company was quoting at Rs 434.55, up Rs 2.25, or 0.52 percent.
Tata Motors was quoting at Rs 468.40, down Rs 4.00, or 0.85 percent. It touched an intraday high of Rs 475 and an intraday low of Rs 463.75.
Simultaneously, Ashok Leyland was quoting at Rs 84.10, down Rs 2.35, or 2.72 percent. Eicher Motors, meanwhile, was down 1.11 percent, quoting at Rs 24,659.00.
Experts on CNBC-TV18 have reacted mixed to the verdict. SIAM President Vinod Dasari said that he is awaiting clarity on the issue. Meanwhile, Rajiv Bajaj of Bajaj Auto hailed the verdict and believed that it was a shock and awe judgement.