MARKET EYE-Cut in tax rebate may hit Indian auto makers-Nomura

* Indian auto shares such as Bajaj Auto

fall after theFinance Ministry cuts the rebates paid on certain types ofexports.* Indian auto makers get refunded a portion of local taxes paidfor components used in vehicles, motorcycles or auto parts thatare sold overseas.* Nomura says the Finance Ministry notice has detailedreductions in the rebates of 2-5.5 percent.* The investment bank says fiscal 2014 earning of Bajaj Auto,Ashok Leyland, and TVS Motorswill beimpacted by 6 to 10 percent, assuming prices of their vehiclesremain constant.* Exports accounted for 36 percent of Bajaj Auto's total salesby quantity and 33 percent by revenue in the last financial yearended in March.* Bajaj Auto falls 1.8 percent, TVS Motors falls 1 percentwhile Ashok Leyland is down 0.8 percent.