www.rupeedesk.in
Stocks of major automakers are seen trading with a negative bias in the coming week following Reserve Bank of India's announcement yesterday that it will auction 220-bln-rupee worth cash management bills every Monday in a bid to squeeze liquidity. The move may put upward pressure on banks' lending rates, which in turn would weigh on the rate-sensitive automobile sector that is already witnessing sombre mood. While the central bank's announcement lends an underlying negative bias to the overall auto sector stocks, stock-specific action is likely. Mahindra & Mahindra Ltd is set to detail its earnings for Apr-Jun on Tuesday.
Results (Apr-Jun earnings) of M&M (Mahindra & Mahindra) are crucial. On a standalone basis, the company is expected to report a 20% on-year rise in its net profit at 8.72 bln rupees. Net sales are seen at 102.06 bln rupees. Tata Motors Ltd Wednesday reported a 23% year-on-year decline in Apr-Jun consolidated net profit to 17.3 bln rupees. Its consolidated net sales for the quarter grew 8.3% to 467.51 bln rupees. Tata Motors' net profit was below expectations.
Maruti Suzuki India Ltd stocks are unlikely to see any pronounced bias, but the underlying current is seen negative next week. The festival season, which typically perks up vehicle demand, starting mid-August should bring some cheer to the counter later. With the announcement of ambitious plans for up to 2020, two-wheeler maker Hero MotoCorp Ltd is likely to see its counter trade with a positive bias. Hero MotoCorp plans several expansion measures such as increasing its export base and launching a plethora of new products.
As part of its ambitious plan, Hero MotoCorp plans to have 20 manufacturing facilities globally, double its current annual production to 12 mln units, and more than double its turnover to 600 bln rupees, all by the year 2020. Hero MotoCorp's planned to launch 12 products--mostly refurbished versions of the existing portfolio--by March.
Stocks of major automakers are seen trading with a negative bias in the coming week following Reserve Bank of India's announcement yesterday that it will auction 220-bln-rupee worth cash management bills every Monday in a bid to squeeze liquidity. The move may put upward pressure on banks' lending rates, which in turn would weigh on the rate-sensitive automobile sector that is already witnessing sombre mood. While the central bank's announcement lends an underlying negative bias to the overall auto sector stocks, stock-specific action is likely. Mahindra & Mahindra Ltd is set to detail its earnings for Apr-Jun on Tuesday.
Results (Apr-Jun earnings) of M&M (Mahindra & Mahindra) are crucial. On a standalone basis, the company is expected to report a 20% on-year rise in its net profit at 8.72 bln rupees. Net sales are seen at 102.06 bln rupees. Tata Motors Ltd Wednesday reported a 23% year-on-year decline in Apr-Jun consolidated net profit to 17.3 bln rupees. Its consolidated net sales for the quarter grew 8.3% to 467.51 bln rupees. Tata Motors' net profit was below expectations.
Maruti Suzuki India Ltd stocks are unlikely to see any pronounced bias, but the underlying current is seen negative next week. The festival season, which typically perks up vehicle demand, starting mid-August should bring some cheer to the counter later. With the announcement of ambitious plans for up to 2020, two-wheeler maker Hero MotoCorp Ltd is likely to see its counter trade with a positive bias. Hero MotoCorp plans several expansion measures such as increasing its export base and launching a plethora of new products.
As part of its ambitious plan, Hero MotoCorp plans to have 20 manufacturing facilities globally, double its current annual production to 12 mln units, and more than double its turnover to 600 bln rupees, all by the year 2020. Hero MotoCorp's planned to launch 12 products--mostly refurbished versions of the existing portfolio--by March.
