Auto Stocks Outlook for the week- 30.03.2015 to 01.04.2015
( www.rupeedesk.in )
Stocks
of major automobile manufacturers are seen recovering slightly in the truncated
week
ahead,
after a bout of selling by investors over the past five sessions, which was led
primarily by the fall in the broader market. At their current levels, shares of
major automobile companies are oversold, and will see recovery from here.
Benchmark
share indices ended flat after a choppy session yesterday, with gains in select
index heavyweights being offset by losses in stocks of telecom and oil and gas
companies.
The
demand outlook for vehicles in India looks strong, with the Society of Indian
Automobile Manufacturers expecting two wheeler sales to grow 8-10% in 2015-16
(Apr-Mar). Domestic four wheeler sales are seen growing 4-5% in the same
period.
We
expect positive outlook on stocks of two wheeler manufacturers like Hero
MotoCorp and
TVS
Motor Co as they see vehicle sales picking up steadily in the near future.
Similarly, the
outlook
for shares of medium and heavy commercial vehicle manufacturer Ashok Leyland is
also
positive as its sales have been climbing on a low base.
