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Informist, Thursday, Nov. 14, 2024

MUMBAI – Shares of most auto companies are expected to trade in a narrow range next week, and will take cues from the broader market and company-specific developments, according to analysts. In the week gone by, auto stocks witnessed profit booking after some companies reported weaker-than-expected earnings for the September quarter and the broader market saw outflows of foreign funds. Additionally, stocks remained under pressure due to uncertainty around the economic policies of US President-elect Donald Trump.

This week, the Nifty Auto index closed 3.7% lower at 22914.50 points. By comparison, the benchmark Nifty 50 and Sensex declined by 2.6% and 2.4%, respectively. 

Of the 15 constituents in the auto index, 13 declined over last week. Bharat Forge and Samvardhana Motherson International were among the biggest losers after the two companies reported weaker-than-expected numbers for the last quarter. In comparison, Eicher Motors and MRF were the only stocks that gained. On Thursday, Eicher Motors stock gained as much as 8.4% after the company reported robust earnings and gave a positive outlook for demand.

The Nifty Auto index remained under pressure this week. Although pinpointing an exact bottom may be challenging, long-term investors could consider accumulating quality stocks gradually, said an analyst at a domestic brokerage. Next week, the auto index's resistance level is seen at 23247 and support is expected to be around 22492.80.

Analysts expect segment-specific buying in the auto space, with the two-wheeler category seeing the most interest due to strong growth in retail and wholesale numbers in the last few months and a positive outlook for the coming months. Investors may also look at tractor companies, as sales have improved on account of a good monsoon and better yield. In comparison, investors remain unsure about the passenger vehicle category due to the muted sales growth outlook for the year, despite strong demand during festivals and a slew of product launches in the coming months, according to analysts.

TOP HEADLINES
* Earnings Review: Bharat Forge's Jul-Sept earnings below Street estimates
* Tata Motors denies report of new holding firm for co's PV, CV businesses
* Analyst Concall: Eicher Motors cautious about building 2-wheeler inventory
* Earnings Review: Eicher reports best-ever Jul-Sept revenue at INR 42.6 bln
* Data Alert: India vehicle sales up 11.5% on year in Oct led by two-wheelers
* PRESS: Maruti Suzuki Bhargava says co's India car sales will grow only 3-4%
* Hyundai Motor consol PAT dn 15.5% on year, sales dn 7.5% due to low volumes
* Analyst Concall: Bosch says FY25 growth rate to mirror that of FY24
* Wipro partners with France's FORVIA for advanced driver assistance app
* Earnings Review: Bosch Jul-Sept PAT falls; revenue highest in at least 5 yrs
* RattanIndia Ent posts INR 2.41-billion consol loss in Jul-Sept vs PAT yr ago
* Minda Corp Jul-Sept consol PAT rises 26.5% YoY to INR 743.4 million
* India tractor sales jump 22% YoY to 144,675 units, exports down 1% in Oct
* Uno Minda Jul-Sept consol net profit rises 9% YoY to INR 2.45 billion
* Brokerages mixed post Tata Motors Jul-Sept results; some cut target price
* Maruti Suzuki launches new Dzire starting at INR 679,000
* TVS Motor says Hentschel to step down as CEO of arm Norton Motorcycles
* ZF Commercial reappoints P Kaniappan as MD effective Jan 1
* Analyst Concall: Ashok Leyland aims to arrest revenue decline in Oct-Mar
* Ashok Leyland sees Switch Mobility's India ops EBITDA-breakeven in FY25
* Earnings Review: Tata Motors sales down for 1st time in 10 qtrs in Jul-Sept
* Motherson Sumi Jul-Sept net profit falls 2.4% YoY to INR 1.52 billion
* Tata Motors passenger vehicle stock now down to normal levels, says Balaji

* Analyst Concall: Tata Motors sees buses, vans doing better YoY in Oct-Mar
* ZF Commercial Jul-Sept sales fall 7.6% YoY, net profit rises 4.8%
* Earnings Review: Ashok Leyland profit up 37% YoY on lower expenditure

Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:

End

Reported by Darshan Nakhwa 
Edited by Saji George Titus

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