Auto Stocks Outlook for the week – 15 to 19.06.2015
(Major
automakers are seen trading with a minor positive bias)
( www.rupeedesk.in )
Stocks
of major automakers are seen trading with a minor positive bias in the coming
week in hope of a respectable monsoon. The southwest monsoon yesterday hits
Mumbai and other parts of central Maharashtra, two days behind the schedule of
Jun 10. The current is likely to further advance and cover the remaining parts
of Maharashtra, Karnataka, and Andhra Pradesh over the next five days, India
Meteorological Department said today.
Rains
so far have been only 1% below normal thereby spurring hope of a good crop,
which will keep inflation under control, and possibly boost vehicle demand in
the country. Auto stocks at large would be positive on that account (hope of
good rains), and further updates from the met department are awaited.
Mahindra
& Mahindra Ltd is likely to witness positive action in its counter if rains
are satisfactory over the start of the coming week, a good monsoon would almost
directly boost tractor sales.
Stocks
of two-wheeler manufacturers such as Hero MotoCorp Ltd, Bajaj Auto Ltd, and TVS
Motor Co Ltd are also seen trading with a positive bias all in hope of
satisfactory rains. The motorcycle segment particularly has taken a bad hit in
sales over the past six-seven months due to sentiment in the rural parts of the
country being down after a deficient monsoon last year.
Maruti
Suzuki India Ltd's counter is seen positive during the coming week almost
regardless of the impact of the monsoon, as initial pre-launch response for its
upcoming compact sport utility vehicle S-Cross has been good. Maruti Suzuki is
expected to launch the compact SUV around Jul 15, roughly a week before
competitor Hyundai Motor India launches its own compact SUV Creta on Jul 21.
Tata
Motors Ltd's subsidiary Jaguar Land Rover is expected to detail its global
wholesales figures for May during the coming week, and after reports of a dull
retail scenario. A 40-basis-point on-year rise in industrial growth during
April is seen auguring well for the counter of
commercial vehicle maker Ashok Leyland, the trend for the stock in the short
term was positive.
