Auto Stocks Outlook for the week -04 to 08.07.2016
(Bias positive; sales data, monsoon progress key)
( www.rupeedesk.in )
The stock of major automobile companies are expected to trade with
a positive bias next week, taking cues from sales data for June, optimism over
the progress of the monsoon, and hope of above-average rains this season. The
CNX Auto index may test the 9000-point mark, but is unlikely to exceed it, adding
that the index was likely to hover around 8950 points.
While Maruti Suzuki India Ltd, Eicher Motors Ltd, and Ashok
Leyland Ltd announced their sales numbers during market hours yesterday, Tata Motors Ltd and Hero
MotoCorp Ltd announced their
numbers after market close. Bajaj Auto Ltd will announce its June
numbers on Monday Hero MotoCorp's sales for June were flat at 549,533 units. Not
withstanding the tepid numbers, the
company is optimistic on sales, stating in its release that the
implementation of the Seventh Pay Commission's recommendations and a good monsoon are likely to spur
growth.
