Auto stocks are in focus today after US President Donald Trump said last week that he planned to unveil tariffs on imported cars around April 2. However, Trump did not mention whether the tariffs would apply to all auto imports.
Shares such as Tata Motors, Eicher Motors, Bharat Forge, Sansera Engineering, Suprajit Engineering, Balkrishna Industries, Sona Comstar, Bharat Forge and Samvardhana Motherson are likely to be affected in Monday's trade on Trump's latest announcement on tariffs.
Tata Motors exports luxury cars under the brand Jaguar Land Rover (JLR) and passenger vehicles in the US. Eicher Motors Ltd, the producer of famous Royal Enfield primarily sells 650 cc models bikes.
Auto components makers such as Sansera Engineering Ltd., Suprajit Engineering Ltd, Bharat Forge, Balkrishna Industries, Sona Comstar and Samvardhana Motherson also export their products to the United States.
Bharat Forge has multiple facilities in the United States, including in North Carolina and Tennessee.
Tata Motors shares closed 0.50% lower at Rs 680.25 on Friday against the previous close of Rs 683.65. Market cap of the firm stood at Rs 2.50 lakh crore in the last session.
Shares of Eicher Motors ended 2.36% lower at Rs 4703.95 on Friday against the previous close of Rs 4817.70. Market cap of the firm stood at Rs 1.28 lakh crore in the last session.
Shares of MNC Bharat Forge closed 0.18% higher at Rs 1077.55 on BSE. Market cap of the firm stood at Rs 51,526 crore on Friday.
Sansera Engineering stock ended 0.24% lower at Rs 1190.80 on BSE. Market cap of the firm stood at Rs 7,373 crore.
Shares of Suprajit Engineering, which exports its products to the US, fell 3.81% lower at Rs 402.60 on Friday against the previous close of Rs 418.55. Market cap of the firm stood at Rs 5,522 crore in the last session.
Shares of Balkrishna Industries, Sona BLW Precision Forgings Ltd and Samvardhana Motherson also slipped up to 5% lower in Friday's trade.
In the beginning of this month, US imposed tariffs on Canada, Mexico and China, which would have implications for India. The Trump administration imposed 25 per cent duties on Canadian and Mexican goods. An additional 10 per cent duty above the current tariffs were imposed on China.
Last week, Trump announced new 25 per cent tariffs on all steel and aluminium imports into the country, marking a significant escalation in his trade policy.