M&M, Maruti Suzuki India Drag Nifty Auto As Concern Over Rare Earth Material Supply Weighs

The NSE Nifty Auto started to extend losses in Thursday's session as Mahindra & Mahindra Ltd. and Maruti Suzuki India Ltd. shares weighed on the index. Moreover, concerns over continuity of supply of rare earth materials in the wake of China's ban imposed on April 4 weighed on the sentiments.

India has exactly one month to ensure supply of rare earth magnets from China continues. China imposed ban on rare earth exports on April 4, which meant that India has 90 days of supply. Post the ban, fresh import license is required, which involves 60 days of processing time.

The NSE Nifty Auto opened 0.55% higher at 23,461.55. However, it erased all gains and fell 0.70% to 23,169.7. The index was trading 0.33% down at 23,257.10 as of 11:17 a.m., as compared to a 0.39% advance in the NSE Nifty 50.

Mahindra & Mahindra, Maruti Suzuki India Ltd., Tata Motors Ltd., TVS Motor Co., and Eicher Motors Ltd. were top detractors in the Nifty Auto index.

Motherson Sumi Wiring India Ltd., MRF Ltd., Technocraft Industries (India) Ltd., and Bosch Ltd. cushioned losses.

In terms of share price gains, Ashok Leyland Ltd., Mahindra & Mahindra Ltd., and TVS Motor Co. were top draggers in the Nifty 50.

MRF Ltd., Samvardhana Motherson International, and Apollo Tyres Ltd. rose the most.

The market-cap of auto stocks on National Stock Exchange fell Rs 4,086.1 crore to Rs 20.70 lakh crore as of 11:23 a.m.