S&P Global Ratings downgraded Tata Motors stocks that shed 3 percent. Ashok Leyland, TVS Motor and Bajaj Auto fell 3-5 percent each.
The Indian market was trading in the red in the morning, with the Sensex down 390.01 points, or 1.38 percent, at 27875.30 and the Nifty had slipped 112.55 points, or 1.36 percent, to 8141.25.
The spread of coronavirus seemed to weigh on the market even as Prime Minister Narendra Modi, in a video message, hailed the people for adhering to the 21-day lockdown and requested their support to fight the outbreak.
Banks and autos took the maximum beating. The Nifty Auto was down more than 2.5 percent after automobile companies reported dismal March sales numbers with their manufacturing facilities locked down.
Ashok Leyland down 6%
The share price of Ashok Leyland was down over 6 percent after the company reported a 90 percent decline in sales at 2,179 units in March. The company sold 21,535 vehicles in the same month last year, Ashok Leyland said in a regulatory filing. Domestic sales stood at 1,787 units in March against 20,521 units in the year-ago period, a decline of 91 percent.
Hero MotoCorp down 5%
Hero MotoCorp share price shed 5 percent and was one of the top index losers. The country's largest two-wheeler maker reported a 42.4 percent decline sales at 3,34,647 units in March. The company had sold 5,81,279 units in the corresponding month of the previous year, Hero MotoCorp said in a statement.Total motorcycle sales stood at 3,05,883 units against 5,35,943 units in March 2019, down 42.9 percent. Scooter sales declined 36.55 percent to 28,764 units compared with 45,336 vehicles in the year-ago month, it added.
In an interview to CNBC-TV18, Bajaj Auto said, "The company would be able to service our export orders once the lockdown is over. Domestic demand will take a big knock in the first quarter of FY21. The company is paying vendors and meeting all payment obligations. It has not found a direct impact of crude prices on retail sales."
Tata Motors down 3%
The share price Tata Motors was down 3 percent intraday after S&P Global Ratings downgraded the stock to more vulnerable to non-payment grade 'B', citing weaker-than-expected credit metrics owing to the disruptions and economic impact from the coronavirus pandemic, PTI reported.
On the other hand, Moody's Investors Service has placed Tata Motors' ratings on review for a possible downgrade. The review, which will be completed over the next 90 days, is on the Ba3 corporate family rating and Ba3 senior unsecured debt rating, Moody's said in a statement.
TVS Motor Company down 5%
The share price of TVS Motor Company shed 5 percent after the company's sales plunged 55.5 percent to 144,739 units in March 2020 as against 325,323 units in March 2019. Total sales were down by 42.85% in March compared with 253,261 units in February.
Total two-wheeler sales fell 56.9 percent to 133,988 units in March 2020 as against 310,885 units in the year-ago period . Domestic two-wheeler sales slumped 62 percent to 94,103 units in March 2020 as against sales of 247,694 units in March 2019. Three-wheeler sales declined 25.54 percent to 10,751 units in March 2020 from 14,438 units registered in March 2019.
Maruti Suzuki down 1.3%
Maruti Suzuki was down over a percent after the company could sell only 83,792 units March 2020 compared to 1,58,076 vehicles sold in the year-ago period.
The sales during March 2020 are not comparable with sales in March 2019 due to the suspension of operations with effect from March 22nd 2020, in line with national policy, said the company in a release.
Domestic sales fell 47 percent year-on-year. Sales in FY20 have fallen by 16 percent.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.