Tata Motors, which has closed at Rs.298 levels on Friday, opened lower today at Rs.296 and went on to hit an intra day low at Rs.292.15. Though it has recovered from this level, it is now at Rs.294.30, down 1.5%. Volumes remain mute at 73,000 shares compared to almost 8 lakh shares traded over past two weeks.

The stock is in the red, along with Mahindra & Mahindra after they both reported a fall in sales numbers for August.  The total sales of Tata Motors dropped 31% (YoY) to 49,611 units, of this domestic sales dropped 34% to 44,717 units but exports, which has actually become its main growth engine, was up 12%.

M&M total sales for August dropped 17% at 37,897, domestic sales fell 18% at 35,159 units and exports also dropped to 2738 units v/s 3010 units.

These sales just go on to reiterate that economic recovery is a long way off. The auto sales numbers are always an indicator of things to come in the economy, they are the wheels of the economy. Thus the fact that sales continues to remain in the red does not bode well.