Auto Stocks Outlook for the week – 02 to 06.11.2015
Weak
demand likely to keep investors away
Stocks
of major automobile companies are expected to trade range bound as investor
interest
is seen waning due the expected weak demand during the festival season. Focus
will
be on the Jul-Sep earnings of Tata Motors and Mahindra & Mahindra. They are
scheduled
to detail results on Friday. While stocks of M&M are expected to remain
weak,
after
having fallen more than 5% this week; those of Tata Motors are expected to
trade in
a
range. Tata Motors has gained nearly 1% in the week, but has lost 22% in the
year so
far.
The sentiment for Tata Motors is mildly positive due to improvement of sales in
the
commercial
vehicle segment; and this is seen aiding Ashok Leyland too.