Auto Stocks Outlook for the week – 24 to 28.08.2015
Seen
down next week following broader indices
( www.rupeedesk.in )
Most
automobile stocks are seen trading with a negative bias next week, primarily
tracking broader indices, which are also expected to see a lower week as global
economic concerns persist. Maruti Suzuki India Ltd is likely to be the
best-placed automaker next week, owing to strong fundamentals backed by
launches and portfolio, while also being supported by a hike in prices it
confirmed Thursday.
In
spite of being the best of the pack, Maruti Suzuki, too, is likely to witness
at best muted action in its counter. Among segments, we see stocks of
commercial vehicle and passenger vehicle
manufacturers
outperforming their two-wheeler rivals. Two-wheeler stocks are seen trading
with a negative bias on poor rural sales, with the outlook for the same also
not being positive for the near term. A pick-up is seen in motorcycle demand
only from Q4 (Jan-Mar), and till then the category will keep dragging
two-wheeler stocks.
