Auto Stocks Outlook for the week – 11 to 15.04.2016
(To
take cues from broader market; bias positive)
( www.rupeedesk.in )
Shares
of automobile companies are expected to take cues from the broader market, and
will
show a positive bias. The Auto Index, which closed down nearly 3% from a week
ago,
will see some rebound and may reclaim the 8000-point mark in a truncated week,
which
will see just three trading sessions.
Markets
will remain closed on Thursday and Friday on account of Ambedkar Jayanti
and
Ram Navami, respectively. The positivity from the larger automobile market is
unlikely
to extend to Maruti Suzuki India Ltd.
The
company is seen struggling to establish some control over the fast growing
sports
utility
vehicle market despite the launch of two SUVs in succession. In a recent
report,
Kotak
Institutional Equities said the outlook on the carmaker remains positive, even
as
the
company is seen losing some market share in light of tough competition. The
company
commands 52% market share in the passenger car market. This is seen down
to
and consolidating at 48% over the next couple of years.