www.rupeedesk.in
Stocks of major automakers are likely move along the expected sales number for respective companies till such announcements are made. Thereafter, the actual despatch figures and the broad market would guide the stocks. It is end of the month and auto sales numbers will come out on Wednesday which will be the key focus point. The broader market is another driver for the auto stocks. Many automakers have announced price hikes for their products, and new launches in the upcoming year. Both Tata Motors Ltd, the largest Indian automobile manufacturer in terms of turnover, and Maruti Suzuki India Ltd, the largest in terms of sales numbers, will hike prices of passenger vehicles from January, owing to rising input costs.
This could account for some positive movement for the stocks next week. Another reason why the Maruti Suzuki scrip could trade positively, could be inferred from Chief Operating Officer - Marketing & Sales, Mayank Pareek's statement. The company will report its highest ever retail sales for a month in December on greater discounts and promotional offers on its vehicles. Maruti Suzuki is offering an average discount of 17,000 rupees on its vehicles, according to Pareek. Maruti Suzuki plans to launch a new hatchback in Feb-Mar. Launching a product is always good. If the company confirms the news then the stocks might trade with a positive bias.
The scrip of Hero MotoCorp Ltd is likely to be positive for the next few weeks as the company is all set to launch a slew of motorcycles and also variants of the existing models January onwards. Bajaj Auto Ltd's scrip is among the top picks for the coming week because of strong rural demand for two-wheelers and also on expectations to deliver stable earnings for the ongoing quarter. Tata Motors' sales are expected to be along its performance in the past few quarters--poor in the domestic market, good in the in the international market on the back of its subsidiary Jaguar Land Rover. Therefore, it is likely to remain positive in the coming week, as sales from JLR's stable provide high margins to the company.
However, the auto sector in entirety is not expected to deliver good sales figures for December. This comes despite auto companies offering huge discounts to its consumers during the month. The industry has witnessed slowdown in the past seven-eight months and continues to do so. Overall consumer sentiment has been low and demand has fallen over the months. The only respite to the sector has been the rural segment, which has seen good monsoon this year. On the murky sales outlook, most of the auto stocks are likely to trade with a partial negative bias next week.
Stocks of major automakers are likely move along the expected sales number for respective companies till such announcements are made. Thereafter, the actual despatch figures and the broad market would guide the stocks. It is end of the month and auto sales numbers will come out on Wednesday which will be the key focus point. The broader market is another driver for the auto stocks. Many automakers have announced price hikes for their products, and new launches in the upcoming year. Both Tata Motors Ltd, the largest Indian automobile manufacturer in terms of turnover, and Maruti Suzuki India Ltd, the largest in terms of sales numbers, will hike prices of passenger vehicles from January, owing to rising input costs.
This could account for some positive movement for the stocks next week. Another reason why the Maruti Suzuki scrip could trade positively, could be inferred from Chief Operating Officer - Marketing & Sales, Mayank Pareek's statement. The company will report its highest ever retail sales for a month in December on greater discounts and promotional offers on its vehicles. Maruti Suzuki is offering an average discount of 17,000 rupees on its vehicles, according to Pareek. Maruti Suzuki plans to launch a new hatchback in Feb-Mar. Launching a product is always good. If the company confirms the news then the stocks might trade with a positive bias.
The scrip of Hero MotoCorp Ltd is likely to be positive for the next few weeks as the company is all set to launch a slew of motorcycles and also variants of the existing models January onwards. Bajaj Auto Ltd's scrip is among the top picks for the coming week because of strong rural demand for two-wheelers and also on expectations to deliver stable earnings for the ongoing quarter. Tata Motors' sales are expected to be along its performance in the past few quarters--poor in the domestic market, good in the in the international market on the back of its subsidiary Jaguar Land Rover. Therefore, it is likely to remain positive in the coming week, as sales from JLR's stable provide high margins to the company.
However, the auto sector in entirety is not expected to deliver good sales figures for December. This comes despite auto companies offering huge discounts to its consumers during the month. The industry has witnessed slowdown in the past seven-eight months and continues to do so. Overall consumer sentiment has been low and demand has fallen over the months. The only respite to the sector has been the rural segment, which has seen good monsoon this year. On the murky sales outlook, most of the auto stocks are likely to trade with a partial negative bias next week.
