Automobile Stocks Outlook for the week – 25 to 29.04.2016
(Bias positive; Maruti Suzuki earnings eyed)
( www.rupeedesk.in )
Shares
of automobile companies are seen extending their gains next week ahead of
earnings
announcements for the quarter ended March by Maruti Suzuki India Ltd. The
CNX
Auto Index, which closed flat this week, may test the 8500 point mark, driven
by
the
positive mood created by predictions of an above average monsoon this year.
Maruti
Suzuki, which will announce its earnings for Jan-Mar on Tuesday, is expected to
report
a 10% on-year decline in bottomline to 11.5 bln rupees. However, the market has
already
factored in these numbers and the company may see swift buying at its counters
next
week.
Tata
Motors, the country's largest auto maker by sales is likely to extend gains
into the
next
five trading sessions as well. The company's stock may well test 432 rupees
with
support
kicking in at 405 rupees.