Auto Stocks Outlook for the week – 01 to 05.02.2016
Some
recovery likely next week on new launches
( www.rupeedesk.in )
Stocks
of major automakers are seen making some recovery in the short term backed
by
individual cues, and new launches during the Auto Expo. Stocks of most major
automobile
companies remained flat this week, after trading weak for a couple of
days,
and below par results by passenger car segment leader Maruti Suzuki India.
Stocks
of the car maker breached the 4,000-rupee mark again yesterday, though on a
weekly
basis, the stock closed down just 0.2%.
In
the short-term the stock might look weak, but has bright long term prospects,
backed
by a strong sales pitch and new products. For the Oct-Dec period, Maruti
Suzuki's
bottomline was 13.02 bln rupees, up 27% on year. The company is slated to
launch
the Ignis hatchback and unveil the Brezza sports utility vehicle at the Auto
Expo.
Tata Motors, which has been trading with a negative bias, sees multiple
reversal
points. The stock may face headwinds as fears over its correlation with China
and
other markets mounts. JLR has a significant exposure in China, which is its
second-largest
sales territory. They see momentum indicators picking up action, and
the
stock looks robust.