www.rupeedesk.in
Amid lack of other triggers next week, automobile stocks are likely to move along anticipated sales figure for August that will be announced by the respective companies on Sep 1.Hero Motocorp is expected to show a 14-15% growth year-on-year, as they will look to build up on their inventory for the festive season.There is expectation of good August sales number from many automobile companies and this may drive up stocks in the next few sessions.
Response to new launches by Maruti Suzuki Ltd, and Eicher Motors Ltd could move their stocks. Maruti Suzuki recently launched the WagonR Stingray, and Eicher is expected to launch new Royal Enfield products soon.
Stock of export heavy companies such as Bajaj Auto Ltd may gain following record depreciation in rupee against the US dollar. Overseas sale contributes around 38% of Bajaj Auto's topline,more positive on two-wheeler companies because four-wheeler companies are somewhat dependant on interest rates, and with the rupee depreciating, a hike in interest rate is likely in the near term.
Since Apr 1, the rupee has depreciated nearly 21% against the US dollar when it touched a record low of 65.56 earlier this week. This has dampened any hope of rate cut by the Reserve Bank of India, and already some banks have raised their lending rates anticipating tight liquidity.Interest rates are important variable in Indian auto sales, especially in the four-wheeler segment. Due to this, and the expected rise in diesel prices, four-wheeler companies such as Mahindra & Mahindra Ltd and Maruti-Suzuki could come under pressure.
Amid lack of other triggers next week, automobile stocks are likely to move along anticipated sales figure for August that will be announced by the respective companies on Sep 1.Hero Motocorp is expected to show a 14-15% growth year-on-year, as they will look to build up on their inventory for the festive season.There is expectation of good August sales number from many automobile companies and this may drive up stocks in the next few sessions.
Response to new launches by Maruti Suzuki Ltd, and Eicher Motors Ltd could move their stocks. Maruti Suzuki recently launched the WagonR Stingray, and Eicher is expected to launch new Royal Enfield products soon.
Stock of export heavy companies such as Bajaj Auto Ltd may gain following record depreciation in rupee against the US dollar. Overseas sale contributes around 38% of Bajaj Auto's topline,more positive on two-wheeler companies because four-wheeler companies are somewhat dependant on interest rates, and with the rupee depreciating, a hike in interest rate is likely in the near term.
Since Apr 1, the rupee has depreciated nearly 21% against the US dollar when it touched a record low of 65.56 earlier this week. This has dampened any hope of rate cut by the Reserve Bank of India, and already some banks have raised their lending rates anticipating tight liquidity.Interest rates are important variable in Indian auto sales, especially in the four-wheeler segment. Due to this, and the expected rise in diesel prices, four-wheeler companies such as Mahindra & Mahindra Ltd and Maruti-Suzuki could come under pressure.
