Hyundai Motor shares trade below IPO price for second straight session, here is why the stock is falling

Shares of Hyundai Motor India dropped for a second straight session on Monday, March 30, and traded below its initial public offering (IPO) price of ₹1,865. The stock in the last two trading sessions has fallen as much as 8% to hit an intraday low of ₹1,734. In the intraday deals, Hyundai Motor shares fell as much as 4.55%.

On the BSE, Hyundai Motor shares dropped as much as 4.34%.

Hyundai Motor shares came under selling pressure owing to weak trend and subdued sentiment prevailing in the equity markets on the back of uncertain environment due to rising geopolitical tensions in West Asia. The geopolitical tensions in West Asia have led to supply chain disruption for metals like steel, copper and aluminium which are part of basic raw materials required for manufacturing cars, analysts noted.

Aluminium prices have also jumped significantly in global markets after Iran launched an attack on aluminium production facilities in West Asia. Moreover, rupee depreciation against the US dollar has also added to pain for companies like Hyundai Motor which are reliant upon imports, analysts noted.

The Indian rupee dropped to a record low against the US dollar on Friday as the currency was weighed down by the rising oil prices, foreign investor outflow, a stronger dollar rate in the market, and no signal about a potential near-term end of the West Asia conflict.

The domestic unit, however, rebounded from its record low levels against the US dollar during the early market hours on Monday after the Reserve Bank of India (RBI) intervention to support the rupee, a lower greenback rate in the global market amid the ongoing geopolitical tensions.

RBI on Friday directed the banks to impose a cap on their net open rupee positions in the foreign exchange (forex) market at the $100 million level by the end of each business day, according to a Reuters report.

According to the directive, the banks are mandated to comply with the latest cap for the rupee position by April 10, 2026. The news report also highlighted that due to the RBI’s cap on position limits, the banks are expected to sell US dollars in the domestic forex market.

As of 11:32 am, Hyundai Motor shares traded 2.43% lower at ₹1,772, underperforming the NIFTY50 index which was down 1.5%.