Auto Stocks
Outlook for the week – 27 to 30.01.2015
( www.rupeedesk.in )
Stocks of major automakers are
seen rising next week, consolidating gains made following the
interest rate cut announced by
the Reserve Bank of India, even as Maruti Suzuki India's Oct-Dec
earnings will help decide broader
trajectory.
Maruti Suzuki, India's largest
passenger car manufacturer with 44.8% market share, will declare
its Oct-Dec earnings on Tuesday.
The company is expected to report a 32% on-year rise in its net
profit at 8.99 bln rupees for the
quarter ended December, largely aided by higher volumes and
favourable foreign exchange movement.
Maruti Suzuki was placed strong
coming out of the downturn, and reported a rise in sales
numbers, backed by a healthy
product portfolio, which in turn was blessed by new launches. The
automaker sold 295,502 vehicles
in the domestic market during Oct-Dec, and exported 28,708
vehicles, representing an overall
growth of 12.4% on year. Maruti Suzuki launched its mid-sized
sedan Ciaz during the period
under review. Ciaz has begun generating impressive sales numbers,
and is in contention for the top
spot in the mid-sized sedan category.
Maruti Suzuki's positive earnings
momentum is expected to aid rise in stock prices of other automakers also, given its status
as a heavy stock on the BSE-auto index.
