Stocks of major automobile manufacturing companies may trade in range during the coming week in anticipation of the earnings for Jan-Mar coming in soon. India's leading carmaker Maruti Suzuki India Ltd and two-wheeler manufacturer Hero MotoCorp Ltd are both scheduled to detail their earnings on Apr 26. Maruti Suzuki is expected to post a net profit of 7.18 bln rupees during the Jan-Mar quarter, a 12% rise when compared with the year-ago period. Hero MotoCorp is expected to register an on-year fall of 17% in its net profit during Jan-Mar. The company is expected to come out with net profit of 4.99 bln rupees during the quarter.
FTA (Free Trade Agreement between India and European Union) not coming in for some time now would prove to be a breather for the domestic companies (automobile manufacturers). India is considering a free trade pact with the European Union, under which it may allow cheaper imports of vehicles from the latter, thereby affecting the domestic auto industry negatively. The ban on mining being lifted yesterday should have a positive impact on commercial vehicle manufacturers, particularly Ashok Leyland, as they have a large presence in the southern part.
TECHNICAL OUTLOOK
Stocks of Maruti Suzuki India Ltd are likely to show a positive trend next week. Tata Motors' counter also looks positive, with the stock expected to face resistance at 305-310 rupees and find support at 265 rupees. Hero MotoCorp Ltd's counter, following the trend, also looks positive for the week.
