Backed by persistent selling activity Indian equity markets continued to trade in red during the post noon trading session. Barring stocks from IT sector, all the sectoral indices are trading in red with Metal and Realty stock leading the pack of losers.
Majority of the automobile stocks are trading in the red with Ashok Leyland and Force Motors being the biggest losers. Bajaj Auto and Hero MotoCorp are among the few stocks trading positive. As per data from Society of Indian Automobile Manufacturers (SIAM), domestic passenger car sales fell for the seventh straight month in May. The off take recorded a 12.3% decline to 1,43,216 units. According to SIAM, this is the longest period of consecutive decline in car sales considering even the 2008-09 downturn. The Association has added that economic slowdown, high inflation and interest rates, low consumer sentiments and job insecurity are the factors affecting the demand for cars. During the month, Maruti Suzuki clocked an 8.3% decline in domestic car sales at 66,342 units whereas car sales of Tata Motors nosedived by 48.6% to 8,827 units. However, Hyundai Motors saw a marginal 0.35% rise car sales to 32,052 units for the month. Barring utility vehicles and scooters, all the automobile segments have posted declines in May.
Private banking stocks are trading in red, with Yes bank and Indusind bank are leading among the pack of losers. As per the financial daily, the Reserve bank of India (RBI) has imposed penalty on Axis bank, HDFC bank and ICICI BANK for violating guideline related to KYC (Know your customer) rules. RBI has imposed fine of Rs 50 m on Axis bank, Rs 45 m on HDFC bank and Rs 10 m on ICICI bank. All the three stocks are trading lower.