India’s auto stocks have lost $42 billion in value in the last 16 months, and some analysts say the rout may not be over. That’s as the benchmark S&P BSE Sensex Index rallied to a fresh peak last month. A slowdown in consumption amid a cash crunch in the banking system has left carmakers with a pile of unsold vehicles in what was one of the world’s fastest-growing auto market until last year. “Initial trends are looking weaker than expected," Nomura Holdings Inc. analysts Kapil Singh and Siddhartha Bera wrote in a May 2 note. “Most companies in the sector have further earnings risks due to weaker-than-expected demand."

Source: Mint May 03, 2019 03:56 UTC