Automobile Stocks Outlook for the week – 30.06.2014 to 04.07.2014
(www.rupeedesk.in)
(www.rupeedesk.in)
Stocks of major automobile
manufacturers are seen falling next week as investors are
seen booking profits after the
strong rally over the last five sessions. Stocks of most auto
companies rose this week on the
government's decision to extend the cut in excise duty to
Dec 31. In its interim budget,
the government had cut excise duty on vehicles by 200-600
basis points to boost flagging
sales.
The BSE Auto index also
outperformed broader indices, rising 2.1% from the previous
week, as broader indices remained
flat. The domestic automobile industry had been
lobbying for duty cut extension
to maintain sales momentum. Next week, automobile
companies' shares will also be
dictated by the sales data for June. The companies are
expected to continue reporting better
numbers on sales revival, particularly in the passenger cars space.
