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Stocks of major automakers are seen tepid next week as there are no earnings announcements or major triggers that would affect the stocks. Tata Motors Ltd and Mahindra & Mahindra Ltd are expected to detail their Apr-Jun earnings on Aug 7 and Aug 13 respectively. In the run-up to results of Tata Motors and M&M, their stocks are expected to trade in a narrow range.
M&M is expected to post good numbers, with a 15-17% rise (on year) in the bottomline, while Tata Motors looks to come out with worse-than-expected numbers, mainly on account of a poor show in their commercial vehicle space. We expect Tata Motors' stock trading with a negative bias and M&M on the positive side.
India's largest carmaker Maruti Suzuki India Ltd would face "near-term pressure" due to heavy discounts being offered and a fall in its diesel vehicle sales. On Jul 25, Maruti Suzuki beat street expectations to report a 49% year-on-year rise in its Apr-Jun net profit to 6.32 bln rupees, aided by favourable foreign exchange rates, cost-cutting measures and merger of its arm Suzuki Powertrain India Ltd with itself. The effect of the results has been factored in, and the activity next week would revolve more around discounts and sales, so the outlook would be flattish to negative.
The two-wheeler space is expected to outperform four-wheelers next week. In the commercial vehicle space, the trend where the stocks would underperform during both the coming week and beyond, in the near term.
Stocks of major automakers are seen tepid next week as there are no earnings announcements or major triggers that would affect the stocks. Tata Motors Ltd and Mahindra & Mahindra Ltd are expected to detail their Apr-Jun earnings on Aug 7 and Aug 13 respectively. In the run-up to results of Tata Motors and M&M, their stocks are expected to trade in a narrow range.
M&M is expected to post good numbers, with a 15-17% rise (on year) in the bottomline, while Tata Motors looks to come out with worse-than-expected numbers, mainly on account of a poor show in their commercial vehicle space. We expect Tata Motors' stock trading with a negative bias and M&M on the positive side.
India's largest carmaker Maruti Suzuki India Ltd would face "near-term pressure" due to heavy discounts being offered and a fall in its diesel vehicle sales. On Jul 25, Maruti Suzuki beat street expectations to report a 49% year-on-year rise in its Apr-Jun net profit to 6.32 bln rupees, aided by favourable foreign exchange rates, cost-cutting measures and merger of its arm Suzuki Powertrain India Ltd with itself. The effect of the results has been factored in, and the activity next week would revolve more around discounts and sales, so the outlook would be flattish to negative.
The two-wheeler space is expected to outperform four-wheelers next week. In the commercial vehicle space, the trend where the stocks would underperform during both the coming week and beyond, in the near term.
