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Stocks of major automakers are likely to take cues from the ongoing stock-specific trends, including December sales numbers, for the first few days next week, and will trade later in anticipation of the quarterly results. There is no news flow this week (for the automakers). The trading will mostly be stock-specific, depending upon the anticipated numbers to be given by various brokerage firms. Companies will start declaring their financial results for the Oct-Dec quarter from mid-January. For the first few days it will take cues from the current trade scenario that is going on after the December sales number release. The auto companies this week announced their December sales figures, after which the trade has been stock-specific in the sector.
Most automakers performed poorly in December in terms of sales, with Maruti Suzuki India Ltd being an exception. Maruti Suzuki reported a growth of 5.5% on year to 86,613 units in domestic sales during the month of December. Mahindra & Mahindra Ltd's total automotive sales in December declined 13% from the year-ago period to 39,611 units. To be noted is the tractor sales of the company during the month, which rose 15% on year to 17,037 units, and once again outperformed the automotive division. Tata Motors Ltd sold a total 37,852 vehicles in December, down 42.3% on year, clearly below expectations. Its subsidiary Jaguar Land Rover's sales figures for December are expected to be announced next week, which will drive the stocks.
JLR has been the driving factor in the company's sales and earnings on the back of which it has been performing decently. It is expected to register good numbers for December as well. Hero MotoCorp Ltd, India's largest two-wheeler manufacturer by sales, despatched 524,990 vehicles in December, a contraction of 3.1% on year. The company's sales during December saw the first on-year fall since June, when it had fallen 6%. Bajaj Auto Ltd sold a total of 297,776 units in December, down 13% from the 298,350 units sold last year in the same period. While the effect of the numbers have been factored in during the trading sessions of Thursday and Friday, the stock-specific sentiment is likely to continue next week also.
Stocks of major automakers are likely to take cues from the ongoing stock-specific trends, including December sales numbers, for the first few days next week, and will trade later in anticipation of the quarterly results. There is no news flow this week (for the automakers). The trading will mostly be stock-specific, depending upon the anticipated numbers to be given by various brokerage firms. Companies will start declaring their financial results for the Oct-Dec quarter from mid-January. For the first few days it will take cues from the current trade scenario that is going on after the December sales number release. The auto companies this week announced their December sales figures, after which the trade has been stock-specific in the sector.
Most automakers performed poorly in December in terms of sales, with Maruti Suzuki India Ltd being an exception. Maruti Suzuki reported a growth of 5.5% on year to 86,613 units in domestic sales during the month of December. Mahindra & Mahindra Ltd's total automotive sales in December declined 13% from the year-ago period to 39,611 units. To be noted is the tractor sales of the company during the month, which rose 15% on year to 17,037 units, and once again outperformed the automotive division. Tata Motors Ltd sold a total 37,852 vehicles in December, down 42.3% on year, clearly below expectations. Its subsidiary Jaguar Land Rover's sales figures for December are expected to be announced next week, which will drive the stocks.
JLR has been the driving factor in the company's sales and earnings on the back of which it has been performing decently. It is expected to register good numbers for December as well. Hero MotoCorp Ltd, India's largest two-wheeler manufacturer by sales, despatched 524,990 vehicles in December, a contraction of 3.1% on year. The company's sales during December saw the first on-year fall since June, when it had fallen 6%. Bajaj Auto Ltd sold a total of 297,776 units in December, down 13% from the 298,350 units sold last year in the same period. While the effect of the numbers have been factored in during the trading sessions of Thursday and Friday, the stock-specific sentiment is likely to continue next week also.
