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Stocks of most automobile companies are expected to trade with a positive bias next week due to a variety of reasons.Auto stocks will perform better than the indices next week. The counter of India's largest carmaker Maruti Suzuki India Ltd is expected to trade up on the depreciation of yen, even as the rupee, too, depreciates.
The yen is depreciating more than the rupee. So that is a plus for Maruti. They should gain from this. The rupee has depreciated around 10% against the US dollar since Jan 1. For automakers with good exports, such as Bajaj Auto Ltd, the rupee fall has been beneficial. Bajaj Auto's counter looks positive also on rumours that the government will soon notify norms for quadricycles. Mahindra & Mahindra Ltd is another major automaker that has seen an upside lately, thanks to "good" tractor sales, even though sales of both its commercial vehicles and passenger vehicles have been down. The on year rise in sales is primarily on a low base from last year. The good monsoon this year has resulted in high sales within the agriculture sector.
The counter of commercial vehicle manufacturer Ashok Leyland Ltd is expected to continue to trade with a negative bias, more so on the Delhi government hinting at importing buses from Europe to induct in the fleet of the state transport department. Delhi Chief Minister Sheila Dikshit said the government was not satisfied with the new buses offered by the Indian manufacturers, and that it might consider importing. Ashok Leyland, along with Tata Motors Ltd, is currently a supplier of buses to Delhi government's Delhi Transport Corp.
Automobile manufacturers reported yet another month of dismal sales, with almost all companies showing on year fall in despatches during June. The subsequent fall in counters of those companies, however, has been factored in, and the data to be released by Society of Indian Automobile Manufacturers on Jul 11 does not look to have any significant impact on the stocks.
Stocks of most automobile companies are expected to trade with a positive bias next week due to a variety of reasons.Auto stocks will perform better than the indices next week. The counter of India's largest carmaker Maruti Suzuki India Ltd is expected to trade up on the depreciation of yen, even as the rupee, too, depreciates.
The yen is depreciating more than the rupee. So that is a plus for Maruti. They should gain from this. The rupee has depreciated around 10% against the US dollar since Jan 1. For automakers with good exports, such as Bajaj Auto Ltd, the rupee fall has been beneficial. Bajaj Auto's counter looks positive also on rumours that the government will soon notify norms for quadricycles. Mahindra & Mahindra Ltd is another major automaker that has seen an upside lately, thanks to "good" tractor sales, even though sales of both its commercial vehicles and passenger vehicles have been down. The on year rise in sales is primarily on a low base from last year. The good monsoon this year has resulted in high sales within the agriculture sector.
The counter of commercial vehicle manufacturer Ashok Leyland Ltd is expected to continue to trade with a negative bias, more so on the Delhi government hinting at importing buses from Europe to induct in the fleet of the state transport department. Delhi Chief Minister Sheila Dikshit said the government was not satisfied with the new buses offered by the Indian manufacturers, and that it might consider importing. Ashok Leyland, along with Tata Motors Ltd, is currently a supplier of buses to Delhi government's Delhi Transport Corp.
Automobile manufacturers reported yet another month of dismal sales, with almost all companies showing on year fall in despatches during June. The subsequent fall in counters of those companies, however, has been factored in, and the data to be released by Society of Indian Automobile Manufacturers on Jul 11 does not look to have any significant impact on the stocks.
