Auto Stocks Outlook For The Week - 03 to 06.10.2017
Auto Stocks Outlook For The Week - 03 to 06.10.2017
( www.rupeedesk.in )
Stocks of most automobile companies are seen trading in a range next week as market participants await September automobile sales data which will be released in the first week of October. This week, investors will also keep an eye on the fourth bi-monthly meeting of the Monetary Policy Committee. Navratri marked the onset of festival season from Sep 21 and lucrative offers by various automobile companies are expected to increase demand and aid sales, which suffered a temporary blip due to de-stocking before the roll out of goods and services tax. Two-wheeler manufacturers such as Hero MotoCorp Ltd and Bajaj Auto Ltd have offered discounts up to 3,000 rupees and 3.3%, respectively, on two-wheelers to boost the demand during the festival season. However, the price hike undertaken by manufacturers of sport utility vehicles and large sedans following the GST Council decision to hike compensation cess may affect footfalls in short term. Mahindra & Mahindra Ltd raised the prices of its sport utility vehicles by up to 3.7%, while Maruti Suzuki India Ltd increased the price of petrol variant of Ciaz mid-size sedan by up to 1.4%. On Sep 9, the GST Council decided to increase the compensation cess on mid-sized cars by 2 percentage points to 17%, on large cars by 5 percentage points to 20% and by 7 percentage points on sport utility vehicles to 22%. The compensation cess is in addition to a GST rate of 28%. In the long term, investors have a strong outlook on the country's largest carmaker Maruti Suzuki due to a steady improvement in market share, rising contribution from rural markets, reduced exposure to yen and rising share of premium products. The company's parent, Suzuki Motor Corp, recently said its joint venture with Toshiba and Denso will start making lithium-ion batteries for electric and hybrid cars by 2020. This announcement is set to further boost Maruti Suzuki's prospects at a time when the Indian government is aggressively pushing for electric mobility by 2030. We also expect commercial vehicle companies such as Tata Motors Ltd and Ashok Leyland Ltd to witness recovery in medium and heavy commercial vehicle segments over the next few months, with a pick-up in economic activity and pent-up demand.
Source : Cogencis Information Services Ltd.
Click Below Link
( www.rupeedesk.in )
Stocks of most automobile companies are seen trading in a range next week as market participants await September automobile sales data which will be released in the first week of October. This week, investors will also keep an eye on the fourth bi-monthly meeting of the Monetary Policy Committee. Navratri marked the onset of festival season from Sep 21 and lucrative offers by various automobile companies are expected to increase demand and aid sales, which suffered a temporary blip due to de-stocking before the roll out of goods and services tax. Two-wheeler manufacturers such as Hero MotoCorp Ltd and Bajaj Auto Ltd have offered discounts up to 3,000 rupees and 3.3%, respectively, on two-wheelers to boost the demand during the festival season. However, the price hike undertaken by manufacturers of sport utility vehicles and large sedans following the GST Council decision to hike compensation cess may affect footfalls in short term. Mahindra & Mahindra Ltd raised the prices of its sport utility vehicles by up to 3.7%, while Maruti Suzuki India Ltd increased the price of petrol variant of Ciaz mid-size sedan by up to 1.4%. On Sep 9, the GST Council decided to increase the compensation cess on mid-sized cars by 2 percentage points to 17%, on large cars by 5 percentage points to 20% and by 7 percentage points on sport utility vehicles to 22%. The compensation cess is in addition to a GST rate of 28%. In the long term, investors have a strong outlook on the country's largest carmaker Maruti Suzuki due to a steady improvement in market share, rising contribution from rural markets, reduced exposure to yen and rising share of premium products. The company's parent, Suzuki Motor Corp, recently said its joint venture with Toshiba and Denso will start making lithium-ion batteries for electric and hybrid cars by 2020. This announcement is set to further boost Maruti Suzuki's prospects at a time when the Indian government is aggressively pushing for electric mobility by 2030. We also expect commercial vehicle companies such as Tata Motors Ltd and Ashok Leyland Ltd to witness recovery in medium and heavy commercial vehicle segments over the next few months, with a pick-up in economic activity and pent-up demand.
Tatamotors - Up
Ashokeley - Up
Bajaj Auto - Up
Maruti Suzuki - Down
M&M - Up
Free Intraday Tips : Join Our Whatsapp No : 9841986753
Free Commodity Tips : Join our Whatsapp No : 9094047040
Source : Cogencis Information Services Ltd.
