Auto Stocks Outlook
for the week – 25 to 29.07.2016
(To take cues from
company earnings next week)
Automotive stocks are expected to take cues from earnings of
Maruti Suzuki India Ltd, Bajaj Auto Ltd and Eicher Motors Ltd, slated to be announced on Tuesday,
Wednesday and Thursday, respectively. Largely, the bias for auto stocks remains positive, given an
upswing in sales in the past quarter, on account of good rains.
The CNX Auto Index, which closed flat this week may well
test 9500 points if auto majors are able to meet market expectations on their earnings,
Maruti Suzuki is expected to report a muted quarter on
account of below par sales given the plant
shutdown for maintenance in the beginning of June. The New
Delhi-based passenger car maker is seen reporting a rise of nearly 3% in its bottomline during the
Apr-Jun quarter.
Nevertheless, the long-term outlook of the Maruti Suzuki
remains positive given the company's strong product pedigree, a healthy order pipeline, and strong
fundamentals. Currently, the company has a nine-month waiting period for the Baleno hatchback and a seven
month for Vitara Brezza sports
utility vehicle.