Notably, the benchmark index itself corrected more than three per cent in the past week.
At 11:24 am, the benchmark S&P BSE Sensex was down 0.69 per cent at 37,720 points. It has slipped 3.5 per cent or 1,361 points in past one week on heavy selling by foreign portfolio investors (FPIs). The FPIs have sold equity shares worth of Rs 7,108 crore during the period, data shows.
Yesterday, the International Monetary Fund (IMF) lowered India's GDP growth to 7 per cent from 7.3 per cent, due to the slowdown witnessed across consumption and investment segments. The slowdown accelerated in the recent quarters due to the spill-over effect of the liquidity constraint in the non-banking financial services sector.
M&M, Bosch, Ashok Leyland, Apollo Tyres, Bharat Forge, Eicher Motors, Escorts, Force Motors, JK Tyre & Industries and TVS Srichakra from the auto and related stocks hit multi-year lows on growth slowdown amidst rising inventory and weak consumer sentiments.
With the liquidity crisis in NBFCs and resultant slowdown in credit financing, disbursements for automobile industry is expected to remain slightly under pressure during H1FY20, CARE Ratings said in auto sector update.
Going forward, the rating agency expects demand to continue to remain muted during Q2FY20 and pick up only by Q3FY20 and continue in Q4FY20 with various planned product launches, festival demand and pre-buying of automobiles before the implementation of BS-VI norms on April 1, 2020.
M&M hit an over three-year low of Rs 551, down 2 per cent on the BSE. The stock was trading lowest level since February 12, 2016. It has slipped 44 per cent from its all-time high level of Rs 992 touched on August 30, 2018.
Analysts at JP Morgan said that moderating growth trends and lack of catalysts will remain a drag on valuations for M&M. Going into FY20, peaking of tractor volume growth, demand slowdown/ regulatory disruption (BS6) in UVs and margin pressures remain key concerns for the company, the brokerage firm said.