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<ul><li>Production cuts at Maruti worsen the impact of slowing car sales in India. </li><li>Suzuki shares fell over 4.3% in Japan on Monday, and another 3.3% a day later, due to the threat to its earnings after the slump in India. </li><li>Maruti accounts for over 52% of Suzuki’s global sale volumes. </li></ul>Thousands of miles away from India, the share price of Suzuki is taking the beating for Indians shying away from car showrooms. The stock lost over 4.3% on Monday, and 3.3% on Tuesday, together worth nearly $2 billion in market capitalisation due to the falling demand for cars in general in India, which is eating into the profits of its Indian partner Maruti. India’s largest car maker <keyword id="44883" type="DOMAIN" weightage="20" keywordseo="Maruti-Suzuki">Maruti Suzuki</keyword> has cut production for the fifth consecutive month due to lack of demand. Overall output in India will be down 15% while that of small cars will down to half in July compared to a month earlier, Maruti said. Maruti’s shares fell 4.8%, shedding ₹7,000 crore in market value on Monday. “In view of the current sales environment, we lower our estimates for India domestic sales to +0.2% for FY2019 (from +5.4%) and +3.7% for FY2020 (+6.4%),” JPMorgan said in a report. This will be a debilitating blow for Suzuki for whom India makes for <a href="https://economictimes.indiatimes.com/industry/auto/maruti-continues-to-drive-suzukis-global-growth-story/articleshow/67860711.cms?from=mdr">over half of all its global sale volumes</a>. All Indian car makers put together saw a decline in sales of 18.8% in June, the <a href="https://www.businessinsider.in/june-monthly-car-sales-data-points-to-a-severe-slowdown-in-india/articleshow/69985355.cms">seventh straight monthly fall in car sales</a>, and the worst in 18 years, as per the Society of Indian Automobile Manufacturers (SIAM). In September 2001, after the tech bubble burst plunging the global economy into a temporary crisis, the sales had dropped down by 21.91%. 
 
 
 
 
 
 
 
 
 
 
 
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 The current slowdown in car sales is largely attributed to a broader economic slowdown, lack of jobs, and a decline in consumer sentiment over the last couple of years, starting from the demonetisation in November 2016 followed by the introduction of the Goods and Services Tax (GST) soon after. In rural India, the decline in demand for cars is attributed to a protracted farm crisis, made worse by the ongoing water crisis and deficient monsoon in many parts. This has had a significant impact on Maruti, which has a deeper reach and penetration outside the big cities too. People in India increasingly prefer cab aggregators like Ola and Uber, or even <a href="https://www.businessinsider.in/cars24-used-cars-startup-could-soon-turn-profitable-will-breakeven-by-december-2019/articleshow/69993448.cms">second hand cars to new ones</a>. Double whammy However, the declining sales have not led to a fall in its price. The price of cars is on a rise due to the new emission norms set to kickstart in India from April 2020. The new mandatory BS-VI (Bharat Stage-VI) emission norms are set to make the <keyword id="421590" type="PERSON" weightage="20" keywordseo="diesel-engine">diesel engine</keyword> operated vehicles, especially cars, more expensive. “The rollout of new emissions standards (BS6) and Suzuki's competitive edge (mainly in gasoline cars), we think conditions are currently at their worst amid a bleak short-term earnings outlook, and continue to believe that now is the time to consider medium-term investment,” JPMorgan said. SEE ALSO: <a href="https://www.businessinsider.in/union-budget-2019-indian-government-announces-tax-subsidy-for-purchasers-of-electric-vehicles/articleshow/70091003.cms">Tata Motors, Maruti, Mahindra will benefit from tax deductions on electric vehicles</a> <a href="https://www.businessinsider.in/cars24-used-cars-startup-could-soon-turn-profitable-will-breakeven-by-december-2019/articleshow/69993448.cms">EXCLUSIVE: Cars24 is racing towards profitability as Indians choose used cars over new ones</a> <a href="https://www.businessinsider.in/tata-motors-jaguar-land-rover-moodys-downgrade/articleshow/69889499.cms">Jaguar Land Rover is dragging Tata Motors along in its downward spiral</a>

Suzuki just lost nearly $2 billion in 2 days because of what’s happening in India

<ul><li>The Japanese car making giant has been hit by severe slowdown in car sales in India.</li><li>Suzuki shares have lost over a sixth of its share value this year due to the fear of depleting earnings.</li><li>Maruti accounts for over 52% of Suzuki’s global sale volumes.</li></ul>India’s largest car maker Maruti Suzuki has cut production for eight months in a row due to lack of buyers. The depleting earnings for Maruti is affecting its Japanese parent Suzuki, who just announced a nearly 40% cut in its estimate for operating income this year. The shares of Maruti fell over 2% immediately after the announcement from Suzuki. "The Company hereby revises the consolidated business forecast due to decrease in Japan production in the course of restructuring final inspection scheme, slowdown in Indian automobile market, and exchange rate fluctuations," <a href="https://www.release.tdnet.info/inbs/ek/140120191010406987.pdf" data-type="tilCustomLink" target="_blank">Suzuki said in a filing</a> with the stock exchanges in Tokyo. <table style="width: 188pt;"> </colgroup> <tbody><tr> <td class="xl63" style="height:15.0pt;width:101pt">March 2020 Forecast</td> <td class="xl63" style="border-left-width: initial; border-left-style: none; width: 87pt;">Cut</td> </tr> <tr> <td class="xl64" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 101pt;">Net sales</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 87pt;">10.30%</td> </tr> <tr> <td class="xl64" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 101pt;">Operating income</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 87pt;">39.40%</td> </tr> <tr> <td class="xl64" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 101pt;">Ordinary income</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 87pt;">35.30%</td> </tr> <tr> <td class="xl64" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 101pt;">Net income </td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 87pt;">30%</td> </tr></tbody></table> Brokerage house CLSA has maintained a 'buy' rating on Maruti Suzuki with a target price of ₹7,950 over the next 12 months hoping that the new models will lure some buyers who are still on the fence. The slowdown in car sales is not unique to Maruti. Car sales in India fell 20.5% in September compared to a year earlier. Aside from the economic slump in India, car buyers have shied away from showrooms expecting duty cuts and lower prices as well as fearing a loss of value for their new cars when the new emission norms kick in next year. This has been a debilitating blow for Suzuki for whom India makes for <a href="https://economictimes.indiatimes.com/industry/auto/maruti-continues-to-drive-suzukis-global-growth-story/articleshow/67860711.cms?from=mdr">over half of all its global sale volumes</a>. “In view of the current sales environment, we lower our estimates for India domestic sales to +0.2% for FY2019 (from +5.4%) and +3.7% for FY2020 (+6.4%),” JPMorgan said in a report in June. The steady decline in car sales in India has been the worst in 18 years, according to the Society of Indian Automobile Manufacturers (SIAM). In September 2001, after the tech bubble burst plunging the global economy into a temporary crisis, the sales had dropped down by 21.91%. In rural India, the decline in demand for cars is attributed to a protracted farm crisis, made worse by the ongoing water crisis and deficient monsoon in many parts. This has had a significant impact on Maruti, which has a deeper reach and penetration outside the big cities too. People in India increasingly prefer cab aggregators like Ola and Uber, or even <a href="https://www.businessinsider.in/cars24-used-cars-startup-could-soon-turn-profitable-will-breakeven-by-december-2019/articleshow/69993448.cms">second hand cars to new ones</a>. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/mahindra-suvs-and-pick-up-trucks-are-a-rage-in-south-africa-even-in-a-shrinking-market/articleshow/71518308.cms" data-type="tilCustomLink" target="_blank">Mahindra SUVs and pick-up trucks are a rage in South Africa even in a shrinking market</a> <a href="https://www.businessinsider.in/union-budget-2019-indian-government-announces-tax-subsidy-for-purchasers-of-electric-vehicles/articleshow/70091003.cms">Tata Motors, Maruti, Mahindra will benefit from tax deductions on electric vehicles</a> <a href="https://www.businessinsider.in/cars24-used-cars-startup-could-soon-turn-profitable-will-breakeven-by-december-2019/articleshow/69993448.cms">EXCLUSIVE: Cars24 is racing towards profitability as Indians choose used cars over new ones</a> <a href="https://www.businessinsider.in/tata-motors-jaguar-land-rover-moodys-downgrade/articleshow/69889499.cms">Jaguar Land Rover is dragging Tata Motors along in its downward spiral</a>

Suzuki just slashed its operating income forecast by 40% citing slower sales in India

<ul class="summary-list"><li>The Japanese yen slid past 150 against the dollar Thursday for the first time since 1990. </li><li>The breaching of the key level ups pressure on Japan's officials to intervene to shore up the currency. </li></ul>The <a href="https://markets.businessinsider.com/currencies/usd-jpy">Japanese yen</a> weakened to above 150 to the US dollar for the first time in 32 years, setting the stage for the country's policymakers to intervene in the currency market.The break of the key level for the first time since August 1990 puts pressure on Japanese officials to step in to contain the yen's steady slide, which has been driven by divergence in interest rate policy between Japan and the US.Earlier Thursday, before the historic break, Japan's finance minister said he would take decisive action against big moves in the yen, <a href="https://www.reuters.com/markets/asia/japan-finmin-says-govt-ready-take-action-vs-speculative-yen-moves-2022-10-13/">Reuters reported</a>. "We cannot tolerate excessive, rapid currency market moves driven by speculative action. We will continue to watch currency moves meticulously and with a sense of urgency," Shunichi Suzuki said, per Reuters.The yen fell as low as 150.09 to the dollar earlier Thursday, but has retraced some of that loss to trade broadly flat at 149.86 at last check.The Japanese currency has sold off heavily against the dollar, falling 23% this year so far, as the Bank of Japan holds to its ultra-low interest rates while the US Federal Reserve hikes rates aggressively. Return-hungry investors have bought dollars to take advantage of this, prompting a <a href="https://markets.businessinsider.com/news/currencies/reverse-currency-war-dollar-dominance-pound-yen-central-banks-fed-2022-9">"reverse currency war"</a> as the dollar <a href="https://markets.businessinsider.com/news/currencies/us-dollar-currencies-foreign-exchange-federal-reserve-inflation-rates-goldman-2022-10">surges to 20-year highs</a> and central banks scramble to keep up with the Fed.Japan — which has historically devalued the yen to favor its export-driven economy — was forced to <a href="https://markets.businessinsider.com/news/currencies/dollar-vs-yen-currencies-japanese-government-intervention-tokyo-currency-wars-2022-9">intervene in currency markets</a> in September for the first time since 1998, by snapping up more yen and dumping dollars in a bid to prop up the weakening currency. Policymakers at Japan's central bank ruled out any change in its ultra-easy monetary policy to prop up the yen, <a href="https://www.reuters.com/markets/currencies/japan-finmin-says-checking-fxmeticulously-more-frequently-jiji-2022-10-18/">Reuters reported.</a>"Little has changed for the yen with Japanese officials seemingly willing to let the currency weaken further by capping bond yields," Nick Cawley, senior strategist at IG's DailyFX, said. Yields on the 10-year Japanese government bond are capped at 0.25%, while US 10-year Treasury yields are trading at multiyear highs around 4% — about 375 basis points higher, Cawley pointed out.The BoJ earlier Thursday said it was launching an emergency bond buying scheme to defend the cap, after the yield broke through the 0.25% level.

The Japanese yen falls past the key level of 150 to the dollar, hitting a 32-year low as officials say they're ready to intervene

Mumbai, Apr 1 () Markets began the new fiscal with yet another bruising selloff on Wednesday as global sentiment remained grim due to the Covid-19 pandemic. Reversing the previous session's gains, the 30-share BSE barometer Sensex slumped 1,203.18 points or 4.08 per cent to finish at 28,265.31. Similarly, the NSE Nifty tanked 343.95 points, or 4 per cent, to close at 8,253.80. Global equities skidded as weak factory data from Asia and a steady rise in coronavirus cases pointed to the tough road ahead for the world economy. Dismal auto sales numbers and reports of India missing its fiscal deficit targets by a wide margin further sapped investor confidence here, traders said. Tech Mahindra was the top loser in the Sensex pack, crashing 9.21 per cent, followed by Kotak Bank (8.81 per cent), TCS (6.23 per cent), Infosys (5.65 per cent), Axis Bank (5.50 per cent) and SBI (5.26 per cent). Hero MotoCorp, Bajaj Auto, Bajaj Finance and Titan were the only gainers, spurting up to 2.21 per cent. According to traders, domestic equities plunged in tandem with global stocks as no respite from the coronavirus pandemic seemed in sight. Extensive lockdowns to contain the spread of the virus have severely hit business outlook, they said. Around the world, total number of infected cases surged past 8.6 lakh, while deaths have crossed 42,000. The number of Covid-19 cases in India climbed to 1,637, while the death toll rose to 38, according to the Health Ministry. "The first day of the financial year started off on a negative note, impacted by the negative global markets and also domestic uncertainties with regards to banks' stressed assets and auto numbers. "FIIs have net sold around Rs 62,000 crore in Equity in March and with virus infections increasing, markets are anticipating a worsening of the situation," said Vinod Nair, Head of Research at Geojit Financial Services. All sectoral indices ended with losses. BSE IT, teck, bankex, telecom, finance, FMCG and power indices fell up to 5.58 per cent. Broader BSE midcap and smallcap indices ended up to 2.18 per cent lower. Domestic auto majors like Maruti Suzuki and Hyundai reported up to 47 per cent decline in March sales, hit by the coronavirus-triggered lockdown and weak consumer sentiment. On the global front, Asian markets ended in the red after a slew of weak factory output data from countries like South Korea and Japan. Bourses in Hong Kong, Tokyo, Seoul and Shanghai plunged up to 4 per cent. Benchmarks in Europe were also trading with significant losses. Brent crude futures, the global oil benchmark, plunged 5.20 per cent to USD 24.98 per barrel. ANS ABMABM

Sensex starts FY21 with 1,203-pt plunge; bank, IT stocks hammered

<ul><li>The SGX Nifty was trading 0.35% lower at 7:45 am, indicating a weak opening for Nifty50.</li><li>Here’s a list of stocks to watch for in trade today. </li><li><a href="https://www.businessinsider.in/">Check out the latest news and updates on Business Insider. </a></li></ul>The US stock markets saw its worst day since June on Wednesday, as the virus spike spurred new lockdowns across Europe. The <a href="https://www.businessinsider.in/stock-market/news/dow-craters-943-points-in-worst-day-since-june-as-virus-spike-spurs-new-lockdowns/articleshow/78921995.cms">Dow Jones </a>Industrial Average closed 3.4% lower, the worst one day fall since June 11. And, the S&amp;P 500 fell 1.9%, its largest since September 23. Crude oil also <a href="https://www.businessinsider.in/stock-market/news/oil-tanks-6-on-surging-covid-19-cases-and-inventory-build-ups/articleshow/78917561.cms">cracked 6% on surging COVID-19 cases and inventory buildups</a>. Amidst negative cues from the global markets, the Indian equities are likely to open in the red on Thursday. The SGX Nifty was trading 0.35% lower at 7:45 am, indicating a weak opening for Nifty50. These are the stocks to watch out for during the trading session on October 28: Hero Motocorp India’s largest two-wheeler maker Hero Motocorp reported a 9.05% rise in consolidated net profit to ₹963.82 crore for the quarter ended September 30 on the back of robust sales. In the second-quarter, the company sold 18.22 lakh units, a growth of 7.7% over the same quarter last year. The shares of Hero Motocorp ended 1% higher on Wednesday. Axis Bank Axis Bank posted a net <a href="https://www.businessinsider.in/finance/banks/news/axis-bank-q2-results-profit-revenue-fee-collection-and-provisions/articleshow/78913594.cms">profit </a>of ₹1,683 crore for the second quarter ended September 30. The bank had posted a net loss of ₹112 crore in the same quarter last year. The net interest income (NII) zoomed over 20% to ₹7,326 crore during the quarter under review. The shares of Axis Bank ended 0.43% lower on Wednesday. Larsen &amp; Toubro (L&amp;T) Engineering and construction giant Larsen &amp; Toubro (L&amp;T) posted a 45% decline in consolidated net profit to ₹1,410.29 crore for the quarter ended September 30. The company said cash generation from operations was robust during the quarter, which was strongly supplemented by proceeds from the divestment of E&amp;A business. The company bagged orders worth ₹28,039 crore at the group level during the quarter, registering a decline of 42% compared to the same period last year. The shares of Larsen &amp; Toubro (L&amp;T) ended 0.41% higher on Wednesday. Cipla The drug major Cipla announced the launch of antibody detection kits for COVID-19 in India under the brand name ‘ELIFast’ in partnership with KARWA, under the technology transfer from the Indian Council of Medical Research (ICMR). IgG antibody tests identify the immune status of the individuals to COVID-19. The shares of Cipla ended 0.55% lower on Wednesday. Ajanta Pharma The board of directors of Ajanta Pharma will meet on November 3 to consider a proposal for buy-back of the equity shares of the company and the unaudited consolidated and financial results for the quarter ended September 30. The shares of Ajanta Pharma ended 1% higher on Wednesday. NTPC India’s largest energy conglomerate NTPC has signed an agreement with Japan Bank for International Cooperation (JBIC) for a loan worth ₹3,500 crore. As per the agreement, JBIC will provide 60% of the loan amount, and the balance will be extended by commercial banks namely Sumitomo Mitsui Banking Corporation, Bank of Yokohama, San-In Godo Bank, Joyo Bank and Nanto Bank, under the JBIC guarantee, NTPC said. The shares of NTPC ended 2% lower on Wednesday. GlaxoSmithKline Pharma GlaxoSmithKline Pharmaceuticals reported an 85% drop in its consolidated net profit to ₹76.47 crore for the quarter ended September 30. The company’s consolidated revenue from operations stood at ₹879.32 crore for the quarter. It was ₹882.02 crore for the same period a year ago. The shares of GlaxoSmithKline Pharma ended 0.29% higher on Wednesday. Maruti Suzuki, TVS Motor, IndiGo and BPCL Maruti Suzuki, TVS Motor, IndiGo, BPCL, and other companies are slated to report their quarterly earnings today. SEE ALSO:<a href="https://www.businessinsider.in/stock-market/news/dow-craters-943-points-in-worst-day-since-june-as-virus-spike-spurs-new-lockdowns/articleshow/78921995.cms" data-type="tilCustomLink"> Dow craters 943 points in worst day since June as virus spike spurs new lockdowns</a> <a href="https://www.businessinsider.in/stock-market/news/the-sp-500-will-tumble-up-to-20-now-that-investors-have-lost-hope-that-covid-19-would-be-controlled-an-investment-chief-says/articleshow/78921992.cms" data-type="tilCustomLink">The S&amp;P 500 will tumble up to 20% before the inauguration as investors have lost hope that COVID-19 would be controlled, an investment chief says</a>

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Suzuki just lost nearly $2 billion in 2 days because of what’s happening in India

BI India Bureau

Suzuki just slashed its operating income forecast by 40% citing slower sales in India

Sriram Iyer

The Japanese yen falls past the key level of 150 to the dollar, hitting a 32-year low as officials say they're ready to intervene

Zahra Tayeb

Sensex starts FY21 with 1,203-pt plunge; bank, IT stocks hammered

PTI

Top stocks to watch — Hero Motocorp, Axis Bank, L&T, IndiGo, Maruti Suzuki, Cipla, GSK Pharma, and others

Navdeep Yadav

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