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Stocks of major automakers are seen moving in a narrow range next week due to lack of sector-specific triggers. India's largest carmaker Maruti Suzuki is seen facing some profit booking after weeks of an upward rally following depreciation of yen, Maruti Suzuki pays royalty to its Japanese parent and also imports parts from the country, and hence any fall in yen's value helps the company pare its cost. With the monsoon round the corner, demand for tractors may rise leading to positive affect on Mahindra & Mahindra Ltd.
Tata Motors Ltd, which has been experiencing a negative sentiment for some time, mainly due to its weak domestic performance, may hold at the current levels following "satisfactory" sales of its subsidiary, Jaguar Land Rover. The two-wheeler space is seen posting a rise in domestic retail sales during May, which would help the counters of Bajaj Auto Ltd, and Hero MotoCorp Ltd. Other than these factors, the auto space does not have anything major lined up for the week. None of the major companies is scheduled to detail its quarterly earnings (Jan-Mar) during the week, and so the auto stocks are largely seen tracking the major indices.
