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Stocks of major automobile manufacturers are seen taking cues from the likely trend in the companies' April sales numbers slated to be detailed next week. The impact of quarterly earnings on company stocks is also likely.
India's largest carmaker Maruti Suzuki India Ltd is likely to trade with a negative bias next week, as the company reported lower than expected earnings for the quarter ended March.Maruti Suzuki recorded a net profit of 8 bln rupees for Jan-Mar, down 35.5% on year. Investors were also disappointed with the muted sales guidance for 2014-15 (Apr-Mar). The management said they would be comfortable with 5-6% volume growth in 2014-15, and that they don't see any dramatic sales growth.
TVS Motor Co Ltd will post its earnings for the quarter on Tuesday. Most automakers are likely to detail their April sales figures on Friday with Thursday being a holiday for May Day.
Tata Motors is not expected to clock robust domestic sales for the month, but its global sales continue to be driven by the performance of its subsidiary Jaguar Land Rover. Tata Motors' domestic and US sales for April is likely to come next week. The company's US sales are expected to be robust, which is likely to move up the stock next week.
Stocks of commercial vehicle makers are likely to trade flat next week with a negative bias on reports suggesting possible defaults in auto loans going ahead. On a year-on-year basis, utility vehicle makers' stocks are expected to be weak this month.
Two-wheeler stocks are seen positive for the medium-term with the rural markets continuing to guide sales. Stocks of Mahindra & Mahindra ended up 3.04% at 1,070.70 rupees after Credit Suisse upgraded the stock to 'outperform' from 'neutral', and increased price target to 1,210 rupees per share.
Mahindra & Mahindra was the top gainer on Nifty yesterday. It is possible that the stock might trade negative next week on profit booking.
Stocks of major automobile manufacturers are seen taking cues from the likely trend in the companies' April sales numbers slated to be detailed next week. The impact of quarterly earnings on company stocks is also likely.
India's largest carmaker Maruti Suzuki India Ltd is likely to trade with a negative bias next week, as the company reported lower than expected earnings for the quarter ended March.Maruti Suzuki recorded a net profit of 8 bln rupees for Jan-Mar, down 35.5% on year. Investors were also disappointed with the muted sales guidance for 2014-15 (Apr-Mar). The management said they would be comfortable with 5-6% volume growth in 2014-15, and that they don't see any dramatic sales growth.
TVS Motor Co Ltd will post its earnings for the quarter on Tuesday. Most automakers are likely to detail their April sales figures on Friday with Thursday being a holiday for May Day.
Tata Motors is not expected to clock robust domestic sales for the month, but its global sales continue to be driven by the performance of its subsidiary Jaguar Land Rover. Tata Motors' domestic and US sales for April is likely to come next week. The company's US sales are expected to be robust, which is likely to move up the stock next week.
Stocks of commercial vehicle makers are likely to trade flat next week with a negative bias on reports suggesting possible defaults in auto loans going ahead. On a year-on-year basis, utility vehicle makers' stocks are expected to be weak this month.
Two-wheeler stocks are seen positive for the medium-term with the rural markets continuing to guide sales. Stocks of Mahindra & Mahindra ended up 3.04% at 1,070.70 rupees after Credit Suisse upgraded the stock to 'outperform' from 'neutral', and increased price target to 1,210 rupees per share.
Mahindra & Mahindra was the top gainer on Nifty yesterday. It is possible that the stock might trade negative next week on profit booking.
