Auto
Stocks Outlook for the week – 25 to 28.08.2014
( www.rupeedesk.in )
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.
