Shares of Chennai-Based Companies Hit Amid Heavy Flooding

Shares of Chennai-based companies fell sharply on Wednesday as large scale floods paralysed operations across many companies. Chennai is a major auto manufacturing and IT outsourcing hub for companies including TVS Motor, Infosys, Tata Consultancy Services and Cognizant Technology Solutions.

Two-wheeler manufacturer TVS Motor closed 5 per cent lower at Rs 289.20 as against a 0.3 per cent drop in the broader Nifty.

In a statement to the Bombay Stock Exchange, TVS Motor said, "Incessant rains for the past three weeks in Chennai have had an adverse effect on company's production during the period. The company's suffered sales loss of approximately 15,000 units due to inclement weather."

Shares in commercial vehicle maker Ashok Leyland ended 0.9 per cent lower at Rs 92.55. Ashok Leyland's Ennore plant in Chennai accounts for 40 per cent of its production.

Big unlisted companies such as Ford Motor, BMW AG, Hyundai Motor Co. and Renault SA also have factories in Chennai.

Meanwhile, IT companies, which have significant presence in Chennai, also trended lower. The IT sub-index on the BSE traded nearly 1 per cent down and underperformed the broader markets.

Big losers included Infosys, which fell 1.7 per cent to close at Rs 1,061.

"As a precautionary measure for the safety of our employees due to flooding at the Infosys campuses in Chennai, we have closed our offices today... To ensure client commitments are met, we are managing work from other locations," Infosys said in a statement to NDTV.

Cement maker India Cements declined 1.3 per cent to close at Rs 89.45, while Chennai Petroleum Corp, which is a subsidiary of Indian Oil Corp., fell 1.1 per cent to end at Rs 201.20. Chennai Petroleum Corp said it may shut one of the three crude units in the flood-hit Tamil Nadu.

(With inputs from wires)