Auto Stocks Outlook for the week – 05 to 09.Oct.2015
(To
take cues from September sales numbers)
Stocks
of major automobile companies are likely to take cues from auto sales numbers for
September and the broader market next week. The market is yet to factor in September
sales for major auto manufacturers including Tata Motors Ltd, Bajaj Auto Ltd, and
TVS Motor Company Ltd. While Tata Motors announced its sales number well after market
hours today, data on both TVS and Bajaj is still awaited.
Tata
Motors, the country's largest auto maker by revenue, reported a tepid set of
sales figures for September with the outgo to dealers declining 2% to 42,215
units. The larger trend from auto sales remains that while passenger car sales
dropped, commercial vehicles have done better. Sales of Ashok Leyland more than
doubled on year to 14,771 units. Two-wheeler sales have also remained lukewarm,
with Hero MotoCorp reporting a marginal rise in sales, while Honda Motorcycles
and Scooters India posted a decline in sales.
In
later part of the week, the sector stocks will take cues from the broader
market. The trend is positive only if the larger market remains positive.
