Motherson Sumi dips as promoters sell 2.9 crore shares

Auto ancillary major Motherson Sumi sank more than 3 per cent on Thursday. The stock saw profit booking following a block deal wherein its promoters sold 2.9 crore shares of the company.

During the month, various global brokerage houses upgraded their outlook for the stock, leading to the build-up of positive sentiments for the company. Earlier, during the week, Motherson Sumi's Chairman, Vivek Chaand Sehgal had said that the company is planning for two acquisitions. Following, the news the stock hit its 52-week high on Wednesday.

The company being a major supplier to automobile manufacturer in India as well as abroad is fundamentally strong. Motherson Sumi’s reported increase in both net profits and revenue in its Q2FY17 results. The company's Q2FY17 revenues stood at Rs. 13,338 crores, up by 33 per cent, while net profit were Rs. 502 crore, up by 39 per cent.

On Thursday, the stock closed at Rs. 373.35 per share, down by Rs. 12.05 or 3.13 per cent. While the stock underperformed the auto ancillary sector, trading activity was very high with volumes rising by 517.46 per cent when compared to the stock's 5-day average at closing.