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Stocks of major automakers are seen tracking the indices next week, they would also be impacted by sales numbers for the month of May. Sales numbers would have an effect, yes, but it would not be much. Maruti is likely to post strong numbers, which should have a positive effect on its stock. We are of the view that the auto sales numbers for May are not expected to be reassuring for the companies amid a slow economic environment. Maruti Suzuki India Ltd had over the past two months seen its counter facing a steep upward rally as a result of the depreciation in the value of yen. The stock has corrected over the past two weeks and reached its Feb 1 levels now. Some more correction is due in the stock, but it should hold at current levels next week due to the rising demand for petrol cars over diesel-powered ones. Maruti Suzuki is expected to be one of the few companies posting an on-year rise in its sales numbers, which will also be a positive for its scrip. Tata Motors Ltd, which posted a better-than-expected net profit at 39.45 bln for Jan-Mar, saw its stocks surge by over 5%. Tata Motors was expected to post a net profit of 26.54 bln rupees, a year-on-year fall of 57%. They (Tata Motors) are not expected to post a rise in their sales figures for May, the stock looked neutral for the week, thanks to an impressive performance of its subsidiary Jaguar Land Rover. Mahindra & Mahindra Ltd, too, beat market projections on its Jan-Mar earnings by posting a 1.7% on-year rise in its net profit at 8.89 bln rupees. M&M's net profit was to be 7.57 bln rupees, down 13% on year. Buoyed by the pre-monsoon demand for tractors, Mahindra & Mahindra Ltd would experience a positive movement in its counter next week, and also for a few more days to follow. Stocks of the country's largest two-wheeler manufacturer, Hero MotoCorp Ltd, are also expected to fare positively during the week ahead, primarily on news that the company will launch two motorcycles, and one scooter before December. Hero MotoCorp's previous launch was more than 10 months back, while its closest competitor and former partner, Honda Motorcycle and Scooter India, has been launching one product every quarter.
