Know why Motherson Sumi Ltd. is not doing well at the markets today

Motherson Sumi Ltd., India's top ancillary maker, slid in Friday's trade on fears of a rise in interest payments on its overseas loans as the Rupee weakened versus the Dollar, making foreign-denominated debt more expensive.

Motherson has nearly 5,000 crore rupees of debt on its balance sheet, of which some 1,500 crore rupees is in foreign currency. With the Rupee falling to fresh two-year lows versus the Dollar, analysts are of the view that Motherson's debt servicing costs may rise against the backdrop of a potential slowdown in global automobile sales.

Motherson fell 9.70 rupees, or 3 percent, to 318 rupees on the National Stock Exchange, where 40 lakh shares were traded compared with the 5-day average of 18.9 lakh shares.

Motherson has been a market favourite for several years. As a consequence, its market capitalisation has gained 33 percent in the past one year to 41,720 crore rupees.

(Image credits: Indiatimes)