Automobile stocks are trading lower on sustained selling pressure following a sharp hike in petrol and diesel prices. The broad market is not positive either with several stocks from across various sectors trading in negative territory amid cautious moves by investors.
Asian markets were mostly weak today and European markets are lower too, with investors looking ahead to some key results and eying the European Central Bank's meeting, due later in the week.
The Sensex is down 123.88 points or 0.45% at 27,549.72, while the Nifty50 is down 54 points or 0.62% at 8529.40
Eicher Motors, Mahindra & Mahindra and Hero Motocorp are down 2% - 2.8%. Baja Auto is declining 1.5%, Maruti Suzuki is down 1% and Tata Motors is trading lower by 0.75%. TVS Motor is down marginally, while Ashok Leyland is gaining nearly 1%, bucking the trend.
State run oil marketing companies increased petrol and diesel prices from midnight of October 15. While the priceof petrol has been hiked by Rs 1.34 per litre, diesel price has increased by Rs 2.37 per litre.
The PSU companies stated that the hike in selling prices of petrol and diesel is due to the current level of International product prices of Petrol and diesel and due to the impact of the rupee-dollar exchange rate.
Meanwhile, Hindustan Petroleum Corporation, BPCL and Indian Oil Corporation are off their highs after staying firm earlier in the day. Hindustan Petroleum Corporation (down 0.4%) and BPCL (down 0.6%) are now down in negative territory, while Indian Oil Corporation is up marginally.