Shares of auto companies declined sharply in Tuesday’s trade amid caution over US tariffs. President Donald Trump on Monday said the US was close to finalising a trade deal with India.
"Now, we've made a deal with the United Kingdom, we've made a deal with China… We're close to making a deal with India," Trump said, adding that countries not aligned with US trade terms had been sent letters outlining applicable tariffs.
Bangladesh, Cambodia, Indonesia, Japan, Malaysia, South Korea, and Thailand were among the nations that received these letters, signed by Trump.
The Nifty Auto index was among the worst-performing sectoral indices on Tuesday, slipping nearly 1 percent. All 15 constituents were trading in the red, extending the index’s decline for the third consecutive session.
TVS Motor Company was the top laggard, falling 2 percent to Rs 2,821 on the NSE. Bajaj Auto dropped 1.85 percent, while Samvardhana Motherson International declined 1.62 percent.
Other major stocks, including Hero MotoCorp, Mahindra & Mahindra, Maruti Suzuki India, and Ashok Leyland also witnessed selling pressure, losing up to 1 percent.
Tata Motors shares slipped as well after its subsidiary Jaguar Land Rover (JLR) reported a 10.7 percent year-on-year decline in wholesales for the June quarter to 87,286 units.
The figure marked a 21.7 percent drop from the previous quarter, in line with expectations due to the phase-out of older Jaguar models and the impact of new US tariffs.
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