www.rupeedesk.in
Stocks of automobile companies are expected react negatively to the 1.40-rupee-per-ltr hike in prices of petrol announced yesterday. The hike would especially affect Maruti's (Maruti Suzuki India Ltd) scrip as the petrol segment accounts for 60% of its operations.
We expects Tata Motors Ltd' stock to trade with a positive bias due to reasons such as the government announcing a plan to induct 10,000 buses under the Jawaharlal Nehru National Urban Renewal Mission, a 100-basis-point cut in excise duty for chassis of medium and heavy commercial vehicles, and its subsidiary Jaguar Land Rover expected to post good sales figures for February.
Finance Minister P. Chidambaram, in his Union Budget for 2013-14 (Apr-Mar), proposed measures such as doubling of the monetary allocation for the urban renewal scheme to 148.73 bln rupees, with 10,000 more buses to be inducted into state transport departments. Chidambaram also proposed a reduction of 100 basis points on chassis for medium and heavy commercial vehicles to 13%. In addition to these, the finance minister proposed to increase excise duty on personal sports utility vehicles by 300 basis points to 30%.
Mahindra & Mahindra Ltd's counter would react negatively to the hike in excise duty on SUVs, and would trade with a negative bias in the coming week. The ongoing spell of drought has impacted sales of tractors and farm equipment, which is another reason for Mahindra's scrip to exhibit a negative trend.
Hero MotoCorp Ltd's scrip looks negative for the week due to the employees at its Gurgaon plant going on an indefinite hunger strike in event of their demands for hike in wages not being met by the company.
On Feb 11, the Society of Indian Automobile Manufacturers had said the industry will miss all forecasts set for 2012-13. According to the latest forecast made in January, passenger car sales were to grow 0-1% in 2012-13.
Stocks of automobile companies are expected react negatively to the 1.40-rupee-per-ltr hike in prices of petrol announced yesterday. The hike would especially affect Maruti's (Maruti Suzuki India Ltd) scrip as the petrol segment accounts for 60% of its operations.
We expects Tata Motors Ltd' stock to trade with a positive bias due to reasons such as the government announcing a plan to induct 10,000 buses under the Jawaharlal Nehru National Urban Renewal Mission, a 100-basis-point cut in excise duty for chassis of medium and heavy commercial vehicles, and its subsidiary Jaguar Land Rover expected to post good sales figures for February.
Finance Minister P. Chidambaram, in his Union Budget for 2013-14 (Apr-Mar), proposed measures such as doubling of the monetary allocation for the urban renewal scheme to 148.73 bln rupees, with 10,000 more buses to be inducted into state transport departments. Chidambaram also proposed a reduction of 100 basis points on chassis for medium and heavy commercial vehicles to 13%. In addition to these, the finance minister proposed to increase excise duty on personal sports utility vehicles by 300 basis points to 30%.
Mahindra & Mahindra Ltd's counter would react negatively to the hike in excise duty on SUVs, and would trade with a negative bias in the coming week. The ongoing spell of drought has impacted sales of tractors and farm equipment, which is another reason for Mahindra's scrip to exhibit a negative trend.
Hero MotoCorp Ltd's scrip looks negative for the week due to the employees at its Gurgaon plant going on an indefinite hunger strike in event of their demands for hike in wages not being met by the company.
On Feb 11, the Society of Indian Automobile Manufacturers had said the industry will miss all forecasts set for 2012-13. According to the latest forecast made in January, passenger car sales were to grow 0-1% in 2012-13.
