Automobile Stocks Outlook for the week – 20 to 24.04.2015
( www.rupeedesk.in )
Shares
of major automakers are seen regaining some lost ground over the next week,
after facing acute selling pressure this week. In the first two days of the
next week, major automobile stocks will continue to see selling, after which
they are expected to stabilise and then even gain some ground as the week
progresses.
Shares
of Maruti Suzuki India and Mahindra & Mahindra are expected to remain range
bound next week. Maruti Suzuki will declare its Jan-Mar earnings on Apr 27,
while Mahindra & Mahindra will declare earnings on May 29. Maruti Suzuki is
the country's largest passenger car manufacturer and its Jan-Mar earnings will
give a broad direction to shares of other automobile companies.
We
have a negative outlook in the short term for shares of Bajaj Auto, mainly due
to the company's falling motorcycle sales. Hero MotoCorp shares are also
expected to remain under pressure next week after US-based Erik Buell Racing,
in which the two-wheeler company had a substantial stake, filed for
bankruptcy--a development that may affect the Indian firm's plans in the
American markets.
