Fuel price hike drives auto, steel stocks down
Stocks of auto makers and metal sectors bore the brunt of a hike in fuel prices on Wednesday, as the Bombay Stock Exchange's benchmark Sensex plunged 230.51 points to 15,732.05 at midsession.
Auto sector index suffered the most by 118.18 points at 4251.87 followed by metal sector index by 521.27 points at 15,710.81 at 1330 hrs.
Marketmen said the rise in fuel prices might hamper demand for vehicles and reduce their earnings, which in turn would dampen demand for steel, a key input for auto industry.
They said the rise in petrol prices would, however, ease pressure on earnings of companies in oil marketing business.
Stocks of oil marketing firms today surged over five per cent on the Bombay Stock Exchange following the government's announcement to hike petrol and diesel prices by Rs 5 and Rs 3 a litre, respectively.
State-run oil marketing firms -- BPCL, HPCL and IOC -- witnessed a sharp surge in their shares after the announcement of the fuel price hike.