Auto Stocks Outlook for the week – 27 to 31.03.2017
Auto Stocks Outlook for the week – 27 to 31.03.2017
( www.rupeedesk.in )
The shares of most automobile companies are seen rising next week, with Hero MotoCorp Ltd expected to gain the most. Hero MotoCorp is expected to be the biggest beneficiary of a good monsoon this year. The monsoon during 2014-15 (Apr-Mar) and 2015-16 was extremely weak. So, farmers utilised most of their profits from 2016-17 monsoon in paying off debts and other essential expenditure. So, if expectations of a good monsoon come out to be true, this will result in discretionary spending and Hero MotoCorp will benefit the most from this due to its large rural presence. In the commercial vehicle segment, tractor manufacturers Mahindra & Mahindra Ltd and Escorts Ltd are likely to see a sharp uptick in sales, with the onset of a strong monsoon season. The company continues to control over 47% share in the Indian passenger car market on the back of robust demand for its premium products such as the Baleno hatchback and the Vitara Brezza sports utility vehicle. The company's latest product, Ignis hatchback, might have not performed that well but that hardly matters to a company which holds such a massive market share. In the coming week, the company's shares are seen "bouncing" to 490 rupees. The automaker will launch its latest model, the Tigor compact sedan, on Wednesday. The Nifty Auto index is seen rising towards 10100 points on the back of bullishness in most automobile stocks.
Source : Cogencis Information Services Ltd
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Auto Stocks Outlook for the week – 27 to 31.03.2017
( www.rupeedesk.in )
The shares of most automobile companies are seen rising next week, with Hero MotoCorp Ltd expected to gain the most. Hero MotoCorp is expected to be the biggest beneficiary of a good monsoon this year. The monsoon during 2014-15 (Apr-Mar) and 2015-16 was extremely weak. So, farmers utilised most of their profits from 2016-17 monsoon in paying off debts and other essential expenditure. So, if expectations of a good monsoon come out to be true, this will result in discretionary spending and Hero MotoCorp will benefit the most from this due to its large rural presence. In the commercial vehicle segment, tractor manufacturers Mahindra & Mahindra Ltd and Escorts Ltd are likely to see a sharp uptick in sales, with the onset of a strong monsoon season. The company continues to control over 47% share in the Indian passenger car market on the back of robust demand for its premium products such as the Baleno hatchback and the Vitara Brezza sports utility vehicle. The company's latest product, Ignis hatchback, might have not performed that well but that hardly matters to a company which holds such a massive market share. In the coming week, the company's shares are seen "bouncing" to 490 rupees. The automaker will launch its latest model, the Tigor compact sedan, on Wednesday. The Nifty Auto index is seen rising towards 10100 points on the back of bullishness in most automobile stocks.
Source : Cogencis Information Services Ltd