Auto Stocks Outlook for the week (28.05.2012 - 01.06.2012) Auto stocks are likely to remain flat-to-weak in the next five trading sessions. The recent steep hike in petrol prices and weakening of the rupee against dollar is likely to weigh on shares of automobile companies next week, according to market participants. On Wednesday, state-owned oil marketing companies hiked petrol prices by 11.5%, or 7.54-7.98 rupees per ltr.
The auto counter will also take cues from the earnings of two major automakers in the coming week, with Tata Motors Ltd reporting its Jan- Mar earnings on May 29 and Mahindra & Mahindra announcing quarterly earnings on May 30. Tata Motors is likely to post a net profit of 38.31 bln rupees, a jump of 45% from the corresponding period a year ago. Mahindra & Mahindra is expected to report a 1% fall in net profit at 5.99 bln rupees. The sales numbers for May due on Friday will also determine the trend for the stocks. Hero Moto Corp is likely to report better sales numbers for the month whereas Bajaj Auto looks negative. We are also expecting negative on Maruti Suzuki as he expects petrol price hike and the weakness in the rupee to bring the scrip under pressure. -- You received this message because you are subscribed to the Google Groups "Kences1- Rupeedesk" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/kences1?hl=en.
