Auto Stocks Outlook for the week – 04 to 08.08.2014
( www.rupeedesk.in )
( www.rupeedesk.in )
Automakers' sales figures for
July, detailed yesterday, are expected to dictate the
trajectory of their stocks in the
coming week. Maruti Suzuki India Ltd reported a 22%
rise in its total sales in July
to 101,380 units. Hero MotoCorp, the country's largest twowheeler
manufacturer, sold 529,862 units
in July, up 9% on year. These companies'
stocks are expected to rise in
the week ahead in line with their positive sales numbers.
Mahindra & Mahindra Ltd sold
a total of 35,567 vehicles in July, 7% lower than the
corresponding period a year ago,
with all segments except three-wheelers posting a
decline.
Mahindra & Mahindra's sales
of passenger vehicles during the month fell 5% on year to
14,708 units, while those of
four-wheeler commercial vehicles fell 9% to 12,472 units.
Three-wheeler sales were higher
by 15% in July at 5,142 units. During the month, M&M
exported total 2,520 vehicles,
down 3% on year.
Mahindra & Mahindra's tractor
sales declined again in July, falling 6% on year.M&M's
stocks are seen weak in the
coming sessions, even after the 3% correction that the counter
saw over the past week. Tata
Motors' July total vehicle sales also fell 23% on year
Ashok Leyland sold 7,847 units in
July, down 10% on year. The company announced
these numbers post market hours,
and its stocks are expected to reflect the weakness fall
in the next week, after gaining
2.1% over the past week.
The Mahindra & Mahindra
counter will also take cues from its Apr-Jun earnings that will
be detailed on Aug 8. Over the
past week, the BSE auto index has largely tracked the broader indices, losing 1.8%,
compared with the 2.5% fall in the broader markets.
