Kinetic Engineering lost ground on Tuesday after the company said that production at one of its factories has been stopped due to the ongoing truckers' strike.

The scrip of the two-wheeler maker was down by 4.1% at Rs 63.20 on the BSE in mid-afternoon trades, recording the lowest level of the day. However, the volumes on the counter were low, with just 841 shares changing hands. The stock moved in the Rs 59-73 range in the last few months. Average daily volume in the scrip was at 2,525 shares in the last one year period to 11 April 2003.

Kinetic Engineering on Tuesday said that due to the nationwide truckers strike, the production in one of the companies factories has been stopped. The company did not specify which plant has been affected. Reports said the production was hit at the Ahmednagar plant in Maharashtra. KEL has four plants, three of which are in Maharashtra, and the fourth is located at Pithampur in Madhya Pradesh.

Market men said the ongoing truckers' strike does not augur well for the market and could impact Old Economy stocks. It is estimated that the strike could cost businesses Rs 20,000 crore (Rs 200 billion) a day, while truckers might lose Rs 1,500 crore (Rs 15 billion) daily. Truckers are, however, on an indefinite strike. Their stir is against an order to scrap 15-year-old trucks, frequent hike in diesel prices, and the imposition of value-added tax.

KEL recently launched 250cc motorcycle 'Aquila' recently. The motorcycle's technology has been borrowed from Hyosung Motors of Korea. The company has priced the bike at Rs 145,000, making it the costliest two-wheeler in India.