Stocks of major automakers are seen trading positive next week on rising demand for vehicles as the festival season kicks in. The auto sector should outperform the indices that themselves look positive for next week. The effect of the festive season sales should continue to show during the week, and for the rest of October also. September sales for most automakers offered a ray of hope, with some registering on-year growth and others reducing the extent of their respective losses. Mahindra & Mahindra Ltd was the only stock that looks under pressure for the week due to falling demand for sports utility vehicles. Tata Motors (Ltd) is trading at its lifetime high because of JLR (Tata Motors' subsidiary Jaguar Land Rover) numbers, and the trend should be carried forward into the next week also. So yes, Tata Motors will trade positively during the week. Maruti Suzuki India Ltd, too, looks positive for the week thanks to demand for cars during the festival season, and also the cut in price of petrol. Almost in unison, pointed at two-wheeler makers as stocks to watch during the week. Hero (MotoCorp Ltd) and Bajaj (Auto Ltd) look very positive for the coming week due to the monsoon showing results now in terms of motorcycle and scooter sales. Bajaj Auto Ltd is scheduled to detail its earnings during Jul-Sep on Oct 16. The company is expected to report a net profit of 7.18 bln rupees, down 1% on year. Net sales of the company are expected to be 4% lower on year at 48.32 bln
rupees.
