Poochandi

December 14, 2010

Motorcycle giant Hero Honda on Tuesday tanked nearly 4 per cent in the early trade on the Bombay Stock Exchange on selling pressure, amid reports that its JV partner Honda of Japan is likely to exit the joint venture.

According to a media report, Hero Honda board is likely to meet on December 20 to finalise the exit deal.

Another report said that Hero Group is set to buy Honda Motor's 26 per cent stake in joint venture Hero Honda for about $1 billion or half the current market value.

Shares of Hero Honda opened on a subdued note and plunged by 3.79 per cent to hit a month-low of Rs. 1,705 per piece on the Bombay Stock Exchange, becoming the worst performer on the 30-share sensitive index.

The scrip witnessed a similar dip on the National Stock Exchange, to touch an early low of Rs. 1,705.50, down 3.85 per cent from previous close.

Meanwhile, the benchmark Sensex was quoting firm at 19,770.86, up 79 points at 12.25 pm.