Hero MotoCorp share price fell nearly one per cent to Rs 2,833.70 apiece intraday on BSE, after the two-wheeler manufacturer decided to extend shutdown by another 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 another week, till May 16, 2021. So far in intraday, 13,000 shares have traded on BSE, while a total of 5.31 lakh shares have exchanged hands on NSE.
The previous quarter was good for Hero MotoCorp as it saw a rise in net profit, however, auto sales of April were not impressive, with rising in COVID-19 cases there is uncertainty regarding the spending pattern of the consumers, Vishal Balabhadruni, Senior Research Analyst at CapitalVia Global Research, told Financial Express 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 decision to extend shutdown at plants to keep with its commitment to the safety and welfare of its people 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 said.
India’s largest carmaker Maruti Suzuki also extended its maintenance shutdown, which was till 9 May 2021, till May 16, 2021, keeping in view the current pandemic situation. While some activities will continue in the plants. Suzuki Motor Gujarat has also taken the same decision. With Covid cases in India still on the rise along with a high number of deaths, auto manufacturing companies like Maruti Suzuki and Hero MotoCorp have preferred to shut down production for another 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 Financial Express Online.
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