Auto Stocks Outlook for the week – 25 to 28.08.2014

Auto Stocks Outlook for the week – 25 to 28.08.2014

Stocks of automobile companies are expected to continue rising in the week ahead, with
Bajaj Auto likely to go up on the likelihood of a notification on quadricycles from the
highways ministry. Automakers' stocks have been rising over the past few weeks on the
back of growth in sales of some vehicle segments such as passenger cars and twowheelers.

Bajaj Auto has readied quadricycles and is prepared to mass-produce the vehicles and roll
them out for commercial launch. The Ministry of Roads and Highways is expected to
issue a notification permitting these vehicles to ply on Indian roads in the week ahead.
If this happens, Bajaj Auto stocks are expected to see a major gain.

Over the past few weeks, the BSE's automobile index has outperformed broader markets.

There are no other major company or sector-specific triggersexpected in the week ahead.