Auto Stocks Outlook for the week – 19 to 23.10.2015 (Seen mixed; to take cues from Jul-Sep earnings)

Auto Stocks Outlook for the week – 19 to 23.10.2015

Seen mixed; to take cues from Jul-Sep earnings

( www.rupeedesk.in )

Stocks of major automobile companies are expected to be a mixed bag next week, with the Jul-Sep earnings likely to lend cues. Tata Motors and Bajaj Auto are top picks. Stocks of Bajaj Auto are expected to trade positive on the back of Jul-Sep earnings to be announced on Monday. The Street expects the company to post a bottomline of 9.20 bln rupees, up 56% on year.

Tata Motors shares have shown encouraging movement after breaking important support levels of 355-356 rupees. Maruti Suzuki shares are entering a phase of consolidation after rising consistently over the past few months. Hero MotoCorp, on the other hand, is likely to trade sideways on expectations of muted earnings. The company is seen reporting a net profit of 7.36 bln rupees, down 4% on year, as a fall in sales volume of the two-wheeler maker is likely to leave a dent in its bottomline for the quarter.