www.rupeedesk.in
Automobile stocks are likely to eye monthly sales figures of auto makers to be announced next week, while a proposed diesel price hike is likely to weigh on their performance. Hero Motocorp and Bajaj-Auto are seen positive due to expectation of good monthly numbers. Also, due to the rupee depreciation, Bajaj stocks could perform well since Bajaj is a net exporter. Overseas sale contributes around 38% of Bajaj Auto Ltd's topline. Four-wheeler companies could underperform as the interest rates will inch upward. Mahindra & Mahindra Ltd may disappoint with slowdown in sales of its utility-vehicle segment. Also mentioned the proposed diesel-price hike after the parliament session ends on Sep 6 could affect stocks such as Maruti Suzuki India Ltd and Mahindra & Mahindra Ltd.Heavy Industries Minister Praful Patel recently proposed a stimulus package for the automobile industry. However the market would not slant any side on the basis of just a proposal. Only if the stimulus is announced would the market move.
Automobile stocks are likely to eye monthly sales figures of auto makers to be announced next week, while a proposed diesel price hike is likely to weigh on their performance. Hero Motocorp and Bajaj-Auto are seen positive due to expectation of good monthly numbers. Also, due to the rupee depreciation, Bajaj stocks could perform well since Bajaj is a net exporter. Overseas sale contributes around 38% of Bajaj Auto Ltd's topline. Four-wheeler companies could underperform as the interest rates will inch upward. Mahindra & Mahindra Ltd may disappoint with slowdown in sales of its utility-vehicle segment. Also mentioned the proposed diesel-price hike after the parliament session ends on Sep 6 could affect stocks such as Maruti Suzuki India Ltd and Mahindra & Mahindra Ltd.Heavy Industries Minister Praful Patel recently proposed a stimulus package for the automobile industry. However the market would not slant any side on the basis of just a proposal. Only if the stimulus is announced would the market move.
