Auto component stocks shiver on fears of Omicron virus impact
The stocks had run up by 70-80 per cent over a year. Hence, a drop in stock prices would make the risk-reward equation for investors more favourable
November 30, 2021 / 09:44 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Shares of large auto component makers tumbled on Monday, November 29. Fears over the spread of a new virus variant, Omicron, precipitated investor worries about prolonged disruption in supply chains that are already haunting the global auto industry.
Noticeably, companies with significant export revenue such as Motherson Sumi Systems, Bharat Forge, Suprajit Engineering and Apollo Tyres fell hard by 7-10 percent in a single trading session. Although it is too early to conclude the impact of this variant with 32...