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India's Industrial production for November, due Jan 11, and earnings for Oct-Dec will provide cues to the broad market in the short term, which will lend direction to automobile stocks. The BSE Auto Index is expected to see mild consolidation in the coming week. Going ahead, we expect the demand scenario to remain challenging in 4Q FY 2013 as slowdown in economic growth coupled with higher interest rates and fuel expenses continue to dampen consumer sentiments. Positive on Ashok Leyland Ltd, Hero Moto Corp Ltd, Mahindra & Mahindra Ltd and Tata Motors Ltd on strong fundamentals of the companies. Karvy Stock Broking Ltd expects Hero MotoCorp volumes to remain subdued over the next two-three months on account of high level of inventory as well as lower offtake in festival season. Hero MotoCorp reported volumes of 541,615 units in December, flat year-on-year.
India's Industrial production for November, due Jan 11, and earnings for Oct-Dec will provide cues to the broad market in the short term, which will lend direction to automobile stocks. The BSE Auto Index is expected to see mild consolidation in the coming week. Going ahead, we expect the demand scenario to remain challenging in 4Q FY 2013 as slowdown in economic growth coupled with higher interest rates and fuel expenses continue to dampen consumer sentiments. Positive on Ashok Leyland Ltd, Hero Moto Corp Ltd, Mahindra & Mahindra Ltd and Tata Motors Ltd on strong fundamentals of the companies. Karvy Stock Broking Ltd expects Hero MotoCorp volumes to remain subdued over the next two-three months on account of high level of inventory as well as lower offtake in festival season. Hero MotoCorp reported volumes of 541,615 units in December, flat year-on-year.
