Stocks of automobile companies are likely to show a mixed trend in the coming week. Maruti Suzuki India Ltd is likely to be the pick of the sector as the stock is seen doing well in the near-term on the back of a likely recovery in production and new product launch. The festive season will kick off a string of launches. Maruti will launch its much-awaited new Alto-800 on Tuesday. The company is also ramping up production at its Manesar plant, which makes the counter attractive. Mahindra & Mahindra will launch its high-end sports utility vehicle SsangYong Rexton on Wednesday. The company's stock may trade in the positive territory for a few sessions but is largely seen in a range. Tata Motors' Jaguar Land Rover monthly sales numbers, expected on Oct 15, will set the trend for the stock. The volumes are seen lower year-on-year, and thus will be slightly negative for the counter. We see a downward correction in the stock price of two-wheeler makers in the near term. Stocks of Hero MotoCorp are seen weak while those of Bajaj Auto are expected to trade in a range.
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