Auto Stocks
Outlook for the week – 03 to 07.11.2014
( www.rupeedesk.in )
Stocks of major automobile
manufacturers are seen gaining ground next week, as the bull run is
likely to continue in the broader
Markets.
Yesterday, the S&P BSE Sensex
and the National Stock Exchange's Nifty, the key share indices,
closed at lifetime highs after
touching all-time highs intraday on the back of robust corporate
earnings and a steady inflow of
funds from foreign institutional investors.
Over the past few months, stocks
of automotive companies have been gaining, mainly due to an
increase in vehicle sales. This
trend is expected to go on as the domestic economy continues to
revive.
Vehicle sales have started
growing in key segments such as passenger cars, medium and heavy
commercial vehicles, as the
economy is getting back on track and the consumer sentiment has
turned positive. Two-wheeler
sales have been strong over the past two years, led by scooter sales
mainly in urban India.
Yesterday, Mahindra &
Mahindra, the country's largest maker of utility vehicles and tractors,
reported its Jul-Sep earnings. A
fall in the operating profit margin pulled Mahindra & Mahindra's
net profit down by 4.3% on year
to 9.47 bln rupees, despite a 6.8% increase in net sales to 94.18 bln rupees.
