GOLDEN RULES FOR TRADING

Auto Stocks Outlook for the week- 30.03.2015 to 01.04.2015

Auto Stocks Outlook for the week- 30.03.2015 to 01.04.2015

Stocks of major automobile manufacturers are seen recovering slightly in the truncated week
ahead, after a bout of selling by investors over the past five sessions, which was led primarily by the fall in the broader market. At their current levels, shares of major automobile companies are oversold, and will see recovery from here.

Benchmark share indices ended flat after a choppy session yesterday, with gains in select index heavyweights being offset by losses in stocks of telecom and oil and gas companies.
The demand outlook for vehicles in India looks strong, with the Society of Indian Automobile Manufacturers expecting two wheeler sales to grow 8-10% in 2015-16 (Apr-Mar). Domestic four wheeler sales are seen growing 4-5% in the same period.

We expect positive outlook on stocks of two wheeler manufacturers like Hero MotoCorp and
TVS Motor Co as they see vehicle sales picking up steadily in the near future. Similarly, the
outlook for shares of medium and heavy commercial vehicle manufacturer Ashok Leyland is

also positive as its sales have been climbing on a low base.