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Apart from the influence of the broader market, anticipation of November sales numbers is likely to impact the movement of major automakers' stocks next week. Broader market will definitely have an effect, but the expectation of numbers (monthly sales for November) will drive (the auto stocks). Sales numbers of this month will start trickling in only towards the end of the week. The stocks will then move in anticipation of the numbers. Before that, the broader market will ride the auto stocks. If markets continue to be negative, auto stocks will also come under pressure. But we expects the effect of November sales report to seep in later in the week.
We are positive on Hero MotorCorp Ltd as we expects its November sales to grow by about 10% on year, and on Maruti Suzuki Ltd's scrip as the company is also expected to record good sales growth as it did last month. There is no trigger for Mahindra & Mahindra Ltd. The tractor sales of the company will pick up but at the same time, its utility vehicle segment is likely to continue with the slowdown. Tata Motors Ltd will again show good momentum on the back of strong Jaguar Land Rover sales. The stock is likely to be positive next week. Eicher Motors Ltd is likely to show stellar volume growth. In the commercial vehicle sales space, they are best placed financially. Eicher's range of buses and trucks has the highest profit margins in the domestic market.
Apart from the influence of the broader market, anticipation of November sales numbers is likely to impact the movement of major automakers' stocks next week. Broader market will definitely have an effect, but the expectation of numbers (monthly sales for November) will drive (the auto stocks). Sales numbers of this month will start trickling in only towards the end of the week. The stocks will then move in anticipation of the numbers. Before that, the broader market will ride the auto stocks. If markets continue to be negative, auto stocks will also come under pressure. But we expects the effect of November sales report to seep in later in the week.
We are positive on Hero MotorCorp Ltd as we expects its November sales to grow by about 10% on year, and on Maruti Suzuki Ltd's scrip as the company is also expected to record good sales growth as it did last month. There is no trigger for Mahindra & Mahindra Ltd. The tractor sales of the company will pick up but at the same time, its utility vehicle segment is likely to continue with the slowdown. Tata Motors Ltd will again show good momentum on the back of strong Jaguar Land Rover sales. The stock is likely to be positive next week. Eicher Motors Ltd is likely to show stellar volume growth. In the commercial vehicle sales space, they are best placed financially. Eicher's range of buses and trucks has the highest profit margins in the domestic market.
