Auto Stocks Outlook for the week – 08 to 12.02.2016
(Some
recovery likely next week on sales data)
Shares
of major auto companies are seen trading with a positive bias next
week
on cues, including a good set of sales numbers when the Society of
Indian
Automobile Manufacturers announces its monthly data and
earnings
of Tata Motors and M&M.
Stocks
of most major automobile companies, barring Maruti Suzuki,
remained
flat this week after trading weak for a couple of days.
Shares
of the car maker stayed below the 4,000-rupee and on a weakly
basis
closed down almost 10%. We expect that in the short-term the stock
might
look weak, but has bright long term prospects, backed by a strong
sales
pitch and new products.
Tata
Motors, which has been trading with a negative bias would be a
closely
watched stock next week on account of its earnings, which are
slated
to be declared on Feb 11. Market estimates have pegged the
company's topline at 733.14 bln rupees, up 6% on year.