Shares of Sona BLW Precision Forgings came under mild pressure on Tuesday, January 20, mirroring weakness across global auto and auto ancillary stocks after European markets reacted sharply to fresh tariff-related uncertainty.
The stock was in focus after European automobile counters declined overnight, following comments by US President Donald Trump on imposing higher tariffs on several European nations. The pan-European Stoxx 600 index closed 1.23% lower on Monday, with auto and auto component stocks among the biggest losers.
Market sentiment weakened after Trump warned that eight European allies could face escalating tariffs if an agreement is not reached on his proposal linked to Greenland. According to reports, the tariffs could start at 10% from February 1 and rise to 25% by June 1. Countries potentially impacted include Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland.
European auto stocks reacted negatively, with the Stoxx Europe 600 Automobiles & Parts Index falling 2.22%. Shares of Volkswagen declined 2.82%, Porsche slipped 2.68%, while BMW fell nearly 3.74%, according to a CNBC report.
The weakness in European auto stocks weighed on Sona BLW Precision Forgings due to its exposure to global and European original equipment manufacturers. As per available information, the company supplies precision-forged components and driveline solutions to global automakers, including European OEMs, and has been expanding its presence in the region with new programme wins.
Given its linkage to European auto demand and global supply chains, Sona BLW shares moved in line with broader pressure seen across auto ancillary stocks as investors assessed the potential impact of tariff-related uncertainty on overseas markets.
