How Indian Auto Industry performed at BSE on Black Monday
The stock markets in China, one of the fastest growing and largest economies of the world, came crashing down 9% early on Monday. This was mainly due to weak manufacturing data reported by China back on Friday evening, after the markets closed. Apart from this, China also allowed their pension fund of $547 billion (largest in the world) to be invested in the volatile stock market.
These two reasons resulted in a domino effected, which has taken down almost every major stock market across the globe. The day is already being touted as Black Monday in the global stock market.
For India, today marked the biggest intra-day decline registered by the two stock markets in India – National Stock Exchange and Bombay Stock Exchange. NSE ended the day at 7,809 while BSE ended the day at 25,741.56. This means NSE reported intra-day decline of -490.95 (or -5.92%) while BSE reported decline of -1,624.51 (or -5.94%).
The last time India’s stock market registered this big a decline on a single day was six years ago in 2009, during the global meltdown. But, today’s decline is highest ever in history (day-end to day-end). Investors lost Rs 7 lakh crore (or Rs 700,000,000,000,000) on this Black Monday.
Not only China added to India stock market decline, but also the depreciating rupee, crude prices slipping below $40 a barrel and Indian Oil Corporation, a government owned gas corporation selling 10% stake, which fetched the government Rs 9,300 crores.
This turmoil has also taken down auto industry stocks. Maruti Suzuki, Hero MotoCorp, Tata Motors, Mahindra & Mahindra, Ashok Leyland, MRF, Bajaj Auto, Eicher Motors (owners of Royal Enfield), and many others huge decline in share price.
Below is a report on how some of the major players in the Indian Auto Industry performed on the BSE today.