Auto Stocks Outlook for the week – 27 to 31.07.2015

Auto Stocks Outlook for the week – 27 to 31.07.2015

(Seen trading in a narrow range)

  ( www.rupeedesk.in )

Stocks of major automakers are seen trading in a narrow range in the coming sessions, as market

participants wait for proceedings in Parliament to commence, and for the deadlock to end.

The Opposition has stalled proceedings in Parliament over scams related to Vyapam, and Lalit Modi, and several crucial bills are stuck as a result. The auto sector, for one, would wait for clarity on the Road Transport and Safety Bill, 2015 to be passed.

Market players will also be on the watch out for Maruti Suzuki India's first-quarter earnings, due

Tuesday. Maruti Suzuki's Apr-Jun net profit is seen up 64% year on year at 12.48 bln rupees, aided by higher volumes and a better product mix. Net sales of the company is seen up 21% at 133.81 bln rupees. Sales of its low-margin mini hatchbacks contracted, while those of compact hatchbacks notchbacks, and vans increased during the quarter.

The company domestic sales during Apr-Jun rose 12.9% to 305,694 units, with exports rising 21.7%. The company sold 13,374 units of the semi-premium sedan Ciaz, thereby increasing its overall margins.

Bajaj Auto, which detailed its earnings this week, is likely to trade with a positive bias after a couple of sessions of profit booking. Bajaj Auto reported a 37% year-on-year jump in net profit to 10.15 bln rupees for the quarter ended June, aided by a 99% rise in other income. The Pune-based automaker's net sales rose only 7% to 55.05 bln rupees. Although the company's sales were below expectation, it is seen having a bright couple months ahead on the back of an expected revival in motorcycle sales.