Date:27/06/2006 URL: http://www.thehindubusinessline.com/2006/06/27/stories/2006062703241500.htm

Back Auto stocks lose momentum

Deeptha Rajkumar

Auto counters could be looking at further downside from these levels, according to analysts. The sector, in particular the two-wheeler segment - which had posted good numbers in May - may come under further selling pressure from funds.

Market sources said that there is no incremental buying coming in, with many funds looking to book profit as they are overweight in these stocks.

Interest rate worries coupled with the hike in fuel prices are likely to bog sentiment at these counters, analysts said.

The monsoon is another factor that could serve as a dampener.

On Monday, Hero Honda declined by 4.27 per cent to end the day at Rs 733, while Bajaj Auto ended lower by four per cent to close at Rs 2,595.30.