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

* Indian auto shares such as Bajaj Auto

fall after the Finance Ministry cuts the rebates paid on certain types of exports. * Indian auto makers get refunded a portion of local taxes paid for components used in vehicles, motorcycles or auto parts that are sold overseas. * Nomura says the Finance Ministry notice has detailed reductions in the rebates of 2-5.5 percent. * The investment bank says fiscal 2014 earning of Bajaj Auto, Ashok Leyland , and TVS Motors will be impacted by 6 to 10 percent, assuming prices of their vehicles remain constant. * Exports accounted for 36 percent of Bajaj Auto's total sales by quantity and 33 percent by revenue in the last financial year ended in March. * Bajaj Auto falls 1.8 percent, TVS Motors falls 1 percent while Ashok Leyland is down 0.8 percent.