Auto Stocks Outlook for the week – 14 to 18.12.2015
(Seen
trading positive; Maruti Gujarat vote eyed)
Shares
of major auto companies are seen trading with a positive bias after a
disappointing
week as they closed at levels lower than the previous week. Most
auto
companies struggled during the week in the face of regulatory
complications,
especially a National Green Tribunal judgment that bars the
registry
of all diesel vehicles in Delhi on account of pollution.
There
is some uptick seen in the sector after a disappointing period, especially
because
the long term fundamentals appear to be strong. At the beginning of
the
week, the auto index is seen taking its cues from the broader market, but as
the
week progresses, individual cues will affect various stocks.
India's
largest passenger car maker Maruti Suzuki India Ltd will trade
depending
on the decision of the shareholders on the contentious Gujarat issue.
Voting
on the Gujarat plant issue will close on Tuesday, and the results are
expected
on Wednesday.