Weak euro may hurt auto ancillaries

Shares of auto ancillary companies, such as Motherson Sumi, Bharat Forge, Balkrishna Industries, MM Forgings, Sundaram Fasteners and Wabco may come under pressure due to a sharp decline in the euro against the rupee. Over the last year, the euro has tumbled from a high of 83.5 to 68 a rupee. Analysts expect these firms to be hit due to cross-currency hedgings. If the euro remains weak during the rest of 2015, they may have to pass on the price hikes to customers.