Indian stocks end lower as Tata Motors warns of chip shortage at JLR

BENGALURU, July 6 (Reuters) – Indian stocks backed down to retreat on Tuesday, dragged down by losses in auto stocks after sector baron Tata Motors warned that a worsening chip shortage would hit his Jaguar Land unit Rover.

The blue chip NSE Nifty 50 (.NSEI) closed 0.1% lower at 15,818.25, while the benchmark S&P BSE Sensex (.BSESN) ended lower 0.04 % to 52,861.18 after hitting an all-time high earlier today.

Shares of Jaguar Land Rover’s parent company Tata Motors (TAMO.NS) fell 10% after announcing that semiconductor supply constraints would worsen in the near term, affecting the performance of the unit.

The Nifty Auto index (.NIFTYAUTO) which had risen 0.66% in the morning, ended down 1.74%.

Reliance Industries (RELI.NS), owned by billionaire Mukesh Ambani, closed down 1.2%, posting two consecutive sessions of gains.

Airlines shares closed higher after the ministry of aviation allowed an increase in capacity on domestic flights to 65% until the end of July, against 50% previously. Shares of IndiGo parent company InterGlobe Aviation (INGL.NS) and low-cost carrier SpiceJet (SPJT.NS) ended up 0.7% and 0.1% respectively.

State-owned oil exploration companies Oil and Natural Gas Corporation (ONGC.NS) and Oil India Ltd (OILI.NS) rose 3.4% and 3% respectively, as oil prices increased their earnings after the OPEC + countries canceled negotiations on production levels.

Shares of Morepen Laboratories (MORL.NS) climbed 15.2% after the drugmaker said it began production of the Sputnik V COVID-19 vaccine.

Meanwhile, Indian bond yields surged as a rally in global crude oil prices raised concerns over higher imported inflation, while a selection of items for this week’s bond buyback by the central bank also disappointed investors. Read more

Report by Shivani Singh in Bengaluru; Editing by Aditya Soni

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