Auto Stocks Outlook for the week – 31.08.2015 to 04.09.2015
(Seen
consolidating next week; sales number eyed)
Stocks
of automobile companies are likely to consolidate next week, with investors
waiting for
cues
from the global market in the aftermath of a week that saw several counters
plunge.
The
ongoing week saw value erosion in most counters across sectors, mainly on
account of
devaluation
of the Chinese yuan. Automobile sales numbers would be a trigger for stocks on
1st
September
(Sep 1), but the effect of that would be limited to a session.
Automobile
companies are scheduled to detail their August sales numbers Tuesday. The month
is likely to see a subdued performance from two-wheeler manufacturers due to
slowdown in rural
sales.
Sales of commercial vehicle are seen posting a healthy on-year growth.
A
pick-up is seen in motorcycle demand only from Q4 (Jan-Mar), and till then the
category will keep dragging two-wheeler stocks. Sales of passenger vehicle are
seen "slightly" positive due to preseason demand kicking in.
Maruti
Suzuki India Ltd, the country's largest carmaker by volumes and market share,
is seen
posting
a double-digit growth in sales for August.