Auto Stocks Outlook for the week – 28.07.2014 to 01.08.2014
( www.rupeedesk.in )
( www.rupeedesk.in )
Apr-Jun earnings of Maruti Suzuki India Ltd, scheduled to be
announced on Wednesday,
are seen as key driver of stocks of automobile manufacturers
next week. The result will
be eyed for giving larger direction to the stocks. These
will be post the earnings
declaration and will depend on the company management's
outlook for vehicle sales
growth in the domestic market in the near term.
While volume growth is likely to record a slow recovery in
the upcoming quarters based
on low base and improving sentiments, we favour companies
with strong margin levers, a
better medium-term volume growth outlook and reasonable
valuations.Maruti Suzuki's
stock trading with a minor positive bias during the week,
with consolidation likely during
the latter half. Over the past week, the BSE auto index fell
0.6%, compared with a 1.7% average rise in the broader indices.
