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Stocks of frontline automobile companies will take cues from the companies' Oct-Dec earnings, though they are broadly seen trading with a negative bias in the coming week. Maruti Suzuki India Ltd, India's largest car manufacturer, is scheduled to detail its earnings for the Oct-Dec quarter next Friday. Ashok Leyland Ltd is scheduled to declare its quarterly earnings on Thursday. Expectations from the company's earnings are not much. The auto industry is currently facing a lull, as sales have been lacklustre over the past few months. The industry has its hopes pinned to the Union Budget for duty cuts, and other measures to fuel growth in the sector. The Budget is to be announced on Feb 28. India Ratings expects muted volume growth in the passenger vehicle and commercial vehicle segments to continue in 2013. Low demand coupled with a capacity overhang (in passenger vehicles) and intensifying competition is likely to reduce industry operating margins on average by around 50 bps-100 bps (basis points) for the CV (commercial vehicle) segment and 150 bps-200 bps for the PV (passenger vehicle) segment.
Stocks of Maruti Suzuki India Ltd are seen rangebound in the coming week. The counter of Tata Motors Ltd is seen exhibiting a sideways trend for the coming week. Mahindra and Mahindra Ltd looks negative for the week starting Monday. While giving a bearish view on the scrip of Hero Motocorp Ltd. The benchmark index for the sector, BSE Auto Index, also looks negative.
Stocks of frontline automobile companies will take cues from the companies' Oct-Dec earnings, though they are broadly seen trading with a negative bias in the coming week. Maruti Suzuki India Ltd, India's largest car manufacturer, is scheduled to detail its earnings for the Oct-Dec quarter next Friday. Ashok Leyland Ltd is scheduled to declare its quarterly earnings on Thursday. Expectations from the company's earnings are not much. The auto industry is currently facing a lull, as sales have been lacklustre over the past few months. The industry has its hopes pinned to the Union Budget for duty cuts, and other measures to fuel growth in the sector. The Budget is to be announced on Feb 28. India Ratings expects muted volume growth in the passenger vehicle and commercial vehicle segments to continue in 2013. Low demand coupled with a capacity overhang (in passenger vehicles) and intensifying competition is likely to reduce industry operating margins on average by around 50 bps-100 bps (basis points) for the CV (commercial vehicle) segment and 150 bps-200 bps for the PV (passenger vehicle) segment.
Stocks of Maruti Suzuki India Ltd are seen rangebound in the coming week. The counter of Tata Motors Ltd is seen exhibiting a sideways trend for the coming week. Mahindra and Mahindra Ltd looks negative for the week starting Monday. While giving a bearish view on the scrip of Hero Motocorp Ltd. The benchmark index for the sector, BSE Auto Index, also looks negative.
