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Sale figures for December, to be announced early next week, are expected to lend direction to stocks of automobile companies in the coming week. Auto companies announce their monthly sales numbers on the first of every month. In the coming month, only discount and additional benefit might change the current sentiment otherwise there is some possibility of (downward) correction in auto sales. The BSE auto index is likely to face resistance at 11510 points and find support at 11200 points in the coming week. The auto stocks will also track the broad market, which is expected to take cues from overseas markets next week.
Stocks of Mahindra & Mahindra and Maruti Suzuki India are seen positive going forward. We continue to remain bullish on the M&M's key performing segments that is, utility vehicles, pickups, Maxximo and GIO. The company has ramped up the production of XUV500 by around 1,000 units and around 1,500 units ramp up in volumes of Quanto; we expect company's volume to grow by over 10% in FY13E (2012-13).
