$M&M

Mahindra & Mahindra Ltd (M&M) fell more than 2% on Monday despite the company reporting stronger-than-expected sales figures for May, as rising crude oil prices dampened investor sentiment. The stock came under pressure during the trading session even though the automotive and farm equipment major delivered sales numbers that surpassed market expectations across both its key business segments. Market participants largely attributed the decline to global concerns after crude oil prices climbed sharply. Brent crude gained 2.4% to USD 93.3 per barrel amid worries over stalled negotiations between the United States and Iran. Higher crude prices are typically viewed as a headwind for automobile manufacturers, as they can lead to increased input and transportation costs while also affecting consumer demand due to higher fuel expenses. M&M's automotive division reported total sales of 99,636 units in May, exceeding the CNBC-TV18 poll estimate of 96,400 units. The company also posted a strong performance in its farm equipment business. Domestic tractor sales rose 23% year-on-year to 47,845 units in May, compared with 38,914 units in the same month last year. Total tractor sales, including domestic and export markets, increased to 49,695 units from 40,643 units a year earlier. Export volumes also improved, rising to 1,850 units from the corresponding period last year. Despite the robust operational performance, concerns over higher crude oil prices and their potential impact on costs and demand weighed on the stock.