Shares of Endurance Technologies declined nearly 2% in early trade on Tuesday, January 20, tracking weakness across auto ancillary stocks after sharp losses in European automobile counters overnight.
The stock came under pressure after European markets reacted negatively to fresh tariff-related uncertainty triggered by US President Donald Trump. European auto and auto component stocks were among the worst performers, dragging sentiment across global auto-linked names, including Indian suppliers with overseas exposure.
European equities closed lower on Monday, with the pan-European Stoxx 600 index falling 1.23%. Auto stocks bore the brunt after Trump warned that several European countries could face higher tariffs if they oppose his proposal linked to Greenland. Reports suggest tariffs could start at 10% from February 1 and rise to 25% by June 1 if no agreement is reached.
According to CNBC, the countries potentially impacted include Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland. The Stoxx Europe 600 Automobiles & Parts Index dropped 2.22%, while shares of major carmakers such as Volkswagen, Porsche and BMW declined sharply.
Endurance Technologies was impacted due to its exposure to global and European original equipment manufacturers. The company supplies key automotive components, including die-castings and suspension products, to OEMs in both India and Europe. Any potential disruption to European auto demand or export-linked supply chains tends to weigh on sentiment for such auto ancillary stocks.
As a result, Endurance Technologies shares moved in line with broader selling pressure seen across the auto ancillary space, as investors remained cautious amid rising global trade uncertainty.
