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    Despite slowdown, FIIs raised stake in 4 auto stocks in June

    Despite slowdown, FIIs raised stake in 4 auto stocks in June

    Despite slowdown, FIIs raised stake in 4 auto stocks in June
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    By Mousumi Paul   IST (Published)

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    Auto stocks in India have seen the most wealth erosion as a slowdown in sales, hike in the registration fee for new vehicles and liquidity crunch arising from the present NBFC crisis continued to weigh on their growth prospects.

    Auto stocks in India have seen the most wealth erosion as a slowdown in sales, hike in the registration fee for new vehicles and liquidity crunch arising from the present NBFC crisis continued to weigh on their growth prospects.
    But despite the plunge in the auto sector, foreign institutional investors (FIIs) increased their stakes in some auto stocks in the month of June.
    Maruti Suzuki, which has shed part of its temporary staff and cut its July production by 25 percent, saw interest from overseas investors, who increased their holdings by about 0.86 percent in June.
    FIIs also increased their stake in Eicher Motors and Mahindra & Mahindra. In Eicher Motors, FIIs raised their stake to 33.15 percent in June from 32.49 percent in March, while for M&M, the stake rose to 34.49 percent in June from 31.30 percent in March.
    Interestingly, the FIIs stake in Tata Motors also saw a rise of 0.37 percent despite lower production, rating downgrades, poor JLR sales and disappointing earnings.
    In the case of two-wheelers, the stakes in Hero MotoCorp, TVS Motor and Bajaj Auto were reduced 1-3 percent sequentially.
    Indian automotive industry stakeholders on Wednesday met Union Finance Minister Niramala Sitharaman to discuss the revival of sluggish demand and declining industry sentiments. The industry representative pressed for reduction of GST and take steps to increase liquidity in the market among various other things.
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