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Stocks of major automakers are seen rising next week. Backed by strong hope of festive demand and good sales numbers that were out this week, the shares within the sector are a top-pick for short term investment. After many months, the sector saw improvement in sales in September. The numbers disclosed were better than expected, and companies like Maruti Suzuki India Ltd and Bajaj Auto Ltd registered uptick in sales numbers. Sales numbers (of auto-makers) have been good especially for Maruti and Mahindra and Mahindra (Ltd). Stocks have already reacted to it. There could be some profit booking. Some were more positive on two-wheeler companies than their four-wheeler counterparts. Due to rural demand picking up because of good monsoon we expect the two-wheeler companies like Hero Motocorp (Ltd) and Bajaj Auto (Ltd) to be positive. The festive season kicks in next week, with expectations of good sales. Stock build-up will begin early this time around as the festival season starts a bit earlier this year compared with last year. The government recently decided to provide more funds to public sector banks for offering cheaper loans benefitting especially two-wheelers and consumer durables. Maruti Suzuki is Tulsian's pick for the coming week. Maruti posted 1.8% rise in its domestic sales. The company saw its exports trebling during September to 14,565 units from 5,187 units in the corresponding period a year ago. With the oil marketing companies cutting petrol prices by 3.05 rupees this week, Maruti looks to gain on the stock exchange next week. Earnings expectations of the sector also remain to be a strong indicator. We expect a strong Jul-Sep quarter for auto companies, mainly aided by Tata Motors and MarutiSuzuki. Two-wheeler companies are likely to report a muted performance.
Stocks of major automakers are seen rising next week. Backed by strong hope of festive demand and good sales numbers that were out this week, the shares within the sector are a top-pick for short term investment. After many months, the sector saw improvement in sales in September. The numbers disclosed were better than expected, and companies like Maruti Suzuki India Ltd and Bajaj Auto Ltd registered uptick in sales numbers. Sales numbers (of auto-makers) have been good especially for Maruti and Mahindra and Mahindra (Ltd). Stocks have already reacted to it. There could be some profit booking. Some were more positive on two-wheeler companies than their four-wheeler counterparts. Due to rural demand picking up because of good monsoon we expect the two-wheeler companies like Hero Motocorp (Ltd) and Bajaj Auto (Ltd) to be positive. The festive season kicks in next week, with expectations of good sales. Stock build-up will begin early this time around as the festival season starts a bit earlier this year compared with last year. The government recently decided to provide more funds to public sector banks for offering cheaper loans benefitting especially two-wheelers and consumer durables. Maruti Suzuki is Tulsian's pick for the coming week. Maruti posted 1.8% rise in its domestic sales. The company saw its exports trebling during September to 14,565 units from 5,187 units in the corresponding period a year ago. With the oil marketing companies cutting petrol prices by 3.05 rupees this week, Maruti looks to gain on the stock exchange next week. Earnings expectations of the sector also remain to be a strong indicator. We expect a strong Jul-Sep quarter for auto companies, mainly aided by Tata Motors and MarutiSuzuki. Two-wheeler companies are likely to report a muted performance.
