Auto Stocks Outlook
Seen lower amid weak Jul-Sept earnings, festival sales
This story was originally published at 19:00 IST on 31 October 2024
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MUMBAI – Automobile companies are seen lower next week as Jul-Sept earnings and demand during festivals so far have disappointed investors. There are some concerns that the urban demand is slowing down, especially for passenger vehicles and two-wheelers. Investors will wait for October wholesale numbers by companies, scheduled to be released Friday, which will give an idea about demand during the festival season.
Expectations for October numbers are muted to begin with. Nomura Global Markets Research Wednesday said demand for passenger vehicles and two-wheelers during the festival season in October has been lower than expected. It expects wholesale volumes of passenger vehicles and tractors to decline 2% each in October and the same for medium and heavy commercial vehicles to decline 10% as compared with the same month last year, according to a research report by the brokerage. Volumes of two-wheelers are seen 7% higher during the month, but the brokerage said their channel checks suggest demand is slowing down in this segment as well.
In terms of earnings, market watchers have been unhappy with September quarter results so far. On top of this, commentary on sales during the festival season has added to caution. "Festival season so far is not up to the mark, but we'll have to wait and watch how this pans out. Some of the automobile companies' commentary and reported numbers suggest the festive season was not great at start," said a fund manager with a domestic mutual fund.
Earnings will remain in focus next week with companies such as Ashok Leyaland set to report their numbers Friday. Among companies supplying auto components, Tube Investment of India, Exide Industries, and Amara Raja Energy & Mobility will report their quarterly earnings.
TOP HEADLINES
* Great Eastern Shipping to sell medium-range product tanker Jag Padma
* Jupiter Wagons arm acquires Log9 Materials' railway, e-truck battery ops
* Suzuki Motor to further collaborate with Toyota, supply battery EV SUV
* See retail sales grow 14% on yr in festival season - Maruti Suzuki Chairman
* Maruti Suzuki in talks with Haryana govt for tax waiver on hybrid vehicles
* Earnings Review: Maruti Suzuki's PAT down 17% on year, misses analysts' view
* Maruti Suzuki board OKs amalgamation of Suzuki Motor Gujarat with co
* SpiceJet clears pending TDS dues worth INR 3.1 bln
* JBM Auto Jul-Sept consol net profit rises 12% YoY to INR 495.3 million
* Eicher Motors arm incorporates subsidiary in Indonesia for INR 96.34 mln
* Analyst Concall: Aircraft grounding at mid-70s Jul-Sept - InterGlobe Aviation
* InterGlobe Aviation OKs investment of INR 2.95 bln in IndiGo Ventures Fund
* Earnings Review: InterGlobe posts net loss on high fuel costs, groundings
Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Apollo Tyres | 504.95 | 5.20 | 515.90 | 489.20 |
| Ashok Leyland | 208.18 | (-)2.70 | 212.10 | 204.90 |
| Bajaj Auto | 9836.30 | (-)3.60 | 10116.60 | 9664.80 |
| Balkrishna Industries | 2837.45 | (-)2.40 | 2908.90 | 2785.90 |
| Bharat Forge | 1410.15 | 0.70 | 1461.50 | 1369.60 |
| BOSCH | 35121.60 | (-)2.30 | 37205.70 | 33780.30 |
| Eicher Motors | 4894.65 | 6.60 | 4971.10 | 4782.50 |
| Exide IndustrieS | 455.45 | 1.20 | 472.20 | 443.20 |
| Hero Motocorp | 4989.55 | 0.30 | 5086.60 | 4871.50 |
| Mahindra & Mahindra | 2728.55 | 0.30 | 2797.80 | 2637.00 |
| Maruti Suzuki India | 11076.45 | (-)3.70 | 11322.20 | 10927.10 |
| MRF | 122524.45 | (-)0.20 | 123803.20 | 120863.70 |
| Samvardhana Motherson International | 180.95 | (-)4.60 | 189.10 | 175.60 |
| Tata Motors | 834.05 | (-)3.50 | 848.60 | 824.60 |
| TVS Motor Company | 2493.70 | 1.80 | 2533.30 | 2428.60 |
| Nifty Auto | 23514.70 | (-)1.20 | 23737.40 | 23290.50 |
| Nifty 50 | 24205.35 | 0.10 | 24450.00 | 24050.30 |
| BSE Sensex | 79389.06 | 0.00 | 80331.00 | 78817.00 |
End
Reported by Anshul Choudhary
Edited by Deepshikha Bhardwaj
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