Auto Stocks Outlook for the week – 12 to 16.06.2017
Auto Stocks Outlook for the week – 12 to 16.06.2017
( www.rupeedesk.in )
Stocks of most automobile companies are seen rising next week as index heavyweight Maruti Suzuki
(India) Ltd is expected to soar due to continued investor participation at elevated levels. The
outperformance in shares of India's largest passenger car maker can be attributed to strong demand
for its new models--Baleno hatchback, Vitara Brezza compact sport utility vehicle, and Ignis
hatchback. The company's parent, Suzuki Motor Corp, recently formed a joint venture with Denso Corp and Toshiba Corp to produce lithium-ion batteries which will help in the future trend of hybrid and electric cars. Another sector major Tata Motors Ltd's subsidiary Jaguar Land Rover reported a 1.2% on-year growth in its retail sales for May at 45,487 units. Jaguar Land Rover is confident of an improvement in demand from this month as the all new Discovery model goes on sale in key markets of China and North America and launch of new Range Rover Velar which is scheduled to be launched later this year. Investors are also positive about commercial vehicle giant Ashok Leyland Ltd due to expectations of double-digit growth of 10-15% in 2017-18 (Apr-Mar) in the medium and heavy commercial vehicle segment. With improved demand in the domestic medium and heavy commercial vehicle segment and increased focus on exports and defence business, Ashok Leyland may see improved financial performance going ahead. The Nifty Auto index is likely to gain from the upbeat sentiment across automobile companies and may rise towards 11200 points.
Source : Cogencis Information Services Ltd.
( www.rupeedesk.in )
Stocks of most automobile companies are seen rising next week as index heavyweight Maruti Suzuki
(India) Ltd is expected to soar due to continued investor participation at elevated levels. The
outperformance in shares of India's largest passenger car maker can be attributed to strong demand
for its new models--Baleno hatchback, Vitara Brezza compact sport utility vehicle, and Ignis
hatchback. The company's parent, Suzuki Motor Corp, recently formed a joint venture with Denso Corp and Toshiba Corp to produce lithium-ion batteries which will help in the future trend of hybrid and electric cars. Another sector major Tata Motors Ltd's subsidiary Jaguar Land Rover reported a 1.2% on-year growth in its retail sales for May at 45,487 units. Jaguar Land Rover is confident of an improvement in demand from this month as the all new Discovery model goes on sale in key markets of China and North America and launch of new Range Rover Velar which is scheduled to be launched later this year. Investors are also positive about commercial vehicle giant Ashok Leyland Ltd due to expectations of double-digit growth of 10-15% in 2017-18 (Apr-Mar) in the medium and heavy commercial vehicle segment. With improved demand in the domestic medium and heavy commercial vehicle segment and increased focus on exports and defence business, Ashok Leyland may see improved financial performance going ahead. The Nifty Auto index is likely to gain from the upbeat sentiment across automobile companies and may rise towards 11200 points.
Source : Cogencis Information Services Ltd.
