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Stocks of automobile companies are seen tracking the broad market next week, according to market participants. Some movement is likely in automobile stocks on Thursday and Friday as expectations of monthly sales numbers will start pouring in. The ongoing winter session of the parliament will also be a key monitorable for the Street.
Important economic agendas for the session include amendment to the Insurance Bill to raise foreign direct investment cap to 49%, Banking Regulation
Amendment Bill and Direct Taxes Code. The parliament proceedings were stalled on Thursday and Friday following the Opposition's uproar over government's decision to allow foreign direct investment in multi-brand retail. Prime Minister Manmohan Singh has called for an all-party meeting on Monday to reach a consensus on the FDI issue.
With the results season behind us, focus over the next three-four weeks will shift to the reforms and also the fiscal cliff issue in US. If some of the proposed bills are taken up and passed, we can see the sentiment turn bullish and markets trending higher over the next few weeks. The market will also take cues from European Union summit on hope that officials will reach a deal to release the next tranche of bailout funds to debt-ridden Greece.
We continue to remain bullish on Ashok Leyland and expect over 20% volume growth in Nov'12, backed by incremental volume from new LCV.
