Auto Stocks Outlook for the week – 23 to 27.11.2015
Seen
trading with negative bias next week
Stocks
of major automobile companies are expected to trade in a narrow range with a
negative
bias in the week ahead, with some stocks such as Tata Motors and Hero
Motocorp
Ltd remaining under pressure. The absence of sector-specific triggers next
week
is expected to keep momentum of most automobile stocks in check. However, if
the
stock
is unable to break this crucial barrier, it is likely to remain heavy on the
sell side.
Hero
Motocorp on the other hand yesterday broke a significant support barrier when
it
went
below 2700 rupees. India's largest passenger car maker, Maruti Suzuki, however,
is
seen
looking at some upside and may bounce as much as 10%. Overall, the automobile
industry
has witnessed strong sales growth as companies stocked up their dealerships for
the
festival season.
In
Apr-Oct, passenger car sales in the country rose over 11.5% on year to 1.17 mln
units,
and
total passenger vehicle sales were up 8.5% to 1.6 mln unit, as per data
released by
Society
of Indian Automobile Manufacturers. Total two-wheeler sales were also up 1.7%
on year in Apr-Oct, led by a 14% rise in scooter volumes, as per the
data.