Auto Stocks Outlook for the Week – 06 to 10.04.2015
( www.rupeedesk.in )
Stocks of major automakers are seen trading in line with the
Reserve Bank of India's decisions in its monetary policy review due for
Tuesday. The central bank is expected to hold key rates in its policy review,
which would keep automobile stocks under pressure.
If RBI cuts the repo rate, automobile stocks will rally through
the week. However, if it holds rates, the week would keep them under pressure.
It is unlikely that rates would be cut. Another factor influencing the health
of respective stocks during the upcoming week would be the sales numbers posted
by companies.
Maruti Suzuki India Ltd's counter is seen under pressure, and
trading with a minor negative bias during the week on a subdued sales
performance during March, adding that a minor amount of correction was due in
the counter anyway. India's largest carmaker saw overall volumes decline by 1.6%
to 111,555 units during the final month of 2014-15 (Apr-Mar).
A factor serving as a minor influence on stocks during the next
week would also be the start of the earnings period from Apr 15, which would
keep trade in a tight range. Tata Motors Ltd would see its counter trade with a
positive bias thanks to an enthusiastic response to the company's 75-bln-rupee rights
issue.
