Stocks of automobile companies are seen flat in the coming week as sales numbers indicate softness in demand due to economic slowdown that may be accentuated following a weak monsoon. We believe volume growth is likely to slow down further due to weak monsoons, high inflation and weak consumer sentiment. The southwest monsoon this year is likely to be around 85% of the long period average, making it the worst rainfall since 2009, India Meteorological Department Director General L.S. Rathore said yesterday. The market will also eye Apr-June earnings and management's outlook for stock-specific cues. Mahindra & Mahindra and Tata Motors will announce their Apr-Jun earnings on Aug 8 and Aug 9, respectively.
Tata Motors is seen reporting a 35% on year growth in net profit. Mahindra & Mahindra is likely to post a 1% growth in profit for the June quarter. Both Mahindra & Mahindra and Tata Motors are seen rangebound with a negative bias in the short term. Maruti Suzuki stocks are seen finding support at 1,074 rupees while resistance is pegged at 1,144 rupees. The market is awaiting clarity on when operations at the company's Manesar plant are going to be resumed. Yesterday, the company said that it has still not decided on resuming work at the plant. Tata Motors' stocks are seen finding support at 203 rupees with resistance at 230 rupees. The trend for the stock is seen to be negative.
Tata Motors is seen reporting a 35% on year growth in net profit. Mahindra & Mahindra is likely to post a 1% growth in profit for the June quarter. Both Mahindra & Mahindra and Tata Motors are seen rangebound with a negative bias in the short term. Maruti Suzuki stocks are seen finding support at 1,074 rupees while resistance is pegged at 1,144 rupees. The market is awaiting clarity on when operations at the company's Manesar plant are going to be resumed. Yesterday, the company said that it has still not decided on resuming work at the plant. Tata Motors' stocks are seen finding support at 203 rupees with resistance at 230 rupees. The trend for the stock is seen to be negative.
