Auto Stock
Outlook for the week – 13 to 17.07.2015
(Trade in a range next week)
( www.rupeedesk.in )
Stocks of major automakers are
seen trading in a range in the coming week in the run-up to the
earnings season. The coming week
is going to see a phase of consolidation. Most players will
consolidate their positions in
line with their expectations of the Apr-Jun numbers.
The country has received rainfall
below the long-period average over the past 15 days, which is a
potential cause of worry for
automakers, as the months of July and August are harvest periods for the
kharif crop.
Rainfall is a cause of concern
right now. Some parts have got good rains, but some crucial parts
haven't. We need to wait and
watch how it pans out over the next few weeks. But right now, it still
remains a cause of concern.
Counters of two-wheeler manufacturers such as Hero MotoCorp Ltd and
Bajaj Auto Ltd are seen down in
the coming week owing to poor rains.
Maruti Suzuki India Ltd is
expected to have a better week, thanks to good pre-launch demand seen
for its upcoming compact sport
utility vehicle S-Cross. Maruti Suzuki's counter is seen trading with
a positive bias next week.
