Hero MotoCorp share cost fell almost one per cent to Rs 2,833.70 apiece intraday on BSE, immediately after the two-wheeler manufacturer decided to extend shutdown by a further week across its facilities which had begun in April. Hero MotoCorp on Saturday informed that it has extended the shutdown at its manufacturing facilities across India, its Global Parts Center (GPC) in Neemrana and its R&D facility — the Centre of Innovation and Technology (CIT) in Jaipur — by a further week, till May 16, 2021. So far in intraday, 13,000 shares have traded on BSE, although a total of 5.31 lakh shares have exchanged hands on NSE.
The earlier quarter was very good for Hero MotoCorp as it saw a rise in net profit, nevertheless, auto sales of April have been not impressive, with increasing in COVID-19 instances there is uncertainty concerning the spending pattern of the shoppers, Vishal Balabhadruni, Senior Research Analyst at CapitalVia Global Research, told TheSpuzz Online. “The shutdown is expected to have an adverse impact on the stock as with lower vehicles produced and the uncertainty of demand the situation seems gloomy,” he added.
Hero MotoCorp has taken this selection to extend shutdown at plants to retain with its commitment to the security and welfare of its men and women and to break the chain of the spread of Covid-19. “The company is continuously monitoring the situation and is ready with its business continuity plans to be able to quickly resume and scale up operations as and when the situation improves,” it stated.
India’s biggest carmaker Maruti Suzuki also extended its upkeep shutdown, which was till 9 May 2021, till May 16, 2021, maintaining in view the present pandemic predicament. While some activities will continue in the plants. Suzuki Motor Gujarat has also taken the identical selection. With Covid instances in India nonetheless on the rise along with a higher quantity of deaths, auto manufacturing providers like Maruti Suzuki and Hero MotoCorp have preferred to shut down production for a further week. “This will affect the stock price in terms of its upside. Technically, Heromotocorp will have strong support at 2785 & resistance at 3000. Whereas Maruti has strong support at 6450 & strong resistance at 6800,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told TheSpuzz Online.
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