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Relative Strength (Or Lack Thereof): Auto Stocks

Posted on June 08, 2007

Today s U-turn in the BSE Sensex market index is being blamed (in part) upon stocks in the automotive sector: Auto stocks drive Sensex down 70 ptsMarketmen said there were less buying of vehicles after a rise in interest rates, which was further fuelled on reports that car and two-wheeler makers have cut production.Here is a chart that compares the performance of the S&P CNX Nifty-50 index with that of various auto stocks - Hero Honda, Bajaj Auto, Maruti, Ashok Leyland and Tata Motors: There is little doubt as to the weakness of the auto sector relative to the Nifty. A look at the relative s...

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bse , cnx , cnx nifty , sensex