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Informist, Friday, Dec. 6, 2024

MUMBAI - Automobile stocks are expected to trade in a narrow range next week and take cues from the broader market, company-specific developments, and November retail sales announcements, according to analysts. The Federation of India Automobile Dealers Associations of India will disclose November sales data Monday.

This week, the Nifty Auto index closed 2.5% higher at 23960.25 points. In comparison, the benchmark Nifty 50 and Sensex gained 2.3% and 2.4%, respectively. Of the 15 stocks in the Nifty Auto, 14 gained over last week. Apollo Tyres and Samvardhana Motherson International were the biggest gainers.

On Friday, Samvardhana Motherson International said its arm, Samvardhana Motherson Automotive Systems Group BV, will buy 95% stake in Japan-based auto components maker Atsumitec Co. Ltd. for $57 million. This acquisition will help the company expand its share of business with Japanese original equipment manufacturers, and diversify its business portfolio. 

In the auto index, Hero MotoCorp was the only stock to end lower over last week. The company reported 6.4% on-year decline in total sales for November. Its domestic sales were 439,777 units, down 7.7% on year, and exports were 20,028 units, up 35.7% on year.

"In the last two weeks, the broader market did well, but the auto index has still not seen that kind of positive momentum. Some time-wise corrective phase is going on in the Nifty Auto index," said Ruchit Jain, vice-president of technical research at Motilal Oswal Financial Services Ltd. "The important resistance (for auto index) is around 24400-24500. Till we do not see a break-out above 24500, we believe there could be some underperformance within auto names. However, if the market does well, then we could see some sideways movement."

Rajesh Bhosale, technical analyst at Angel One, said, "Nifty Auto remains range-bound near recent lows, but signs of base formation are emerging in key heavyweight stocks. A strong bounce is anticipated in the coming week. We maintain a positive bias."

TOP HEADLINES
* Maruti Suzuki to hike car prices by up to 4% from Jan on rising input costs
* Tata Motors' JLR UK sales fall 11.1% on year to 5,558 units in November
* Hyundai Motor to hike prices by up to INR 25,000 across models from Jan 1
* Bajaj Auto clarifies on report of price cut for Freedom, some Pulsar models
* Bharat Forge QIP opens; floor price set at INR 1,323.54 per share
* Hero MotoCorp launches 3 VIDA e-scooters, starting price at INR 96,000
* Eicher's Royal Enfield commences ops at new assembly plant in Thailand
* Honda Cars launches 3rd generation Amaze at starting price of INR 799,900
* Don't proceed till govt gives resolution report on Hero Electric: HC to SFIO
* Hyundai Motor America sells 76,008 units in November, up 8% on year
* IndiGo moves HC against Mahindra Electric in trademark suit over use of '6E'
* M&M says in talks with IndiGo to resolve lawsuit on use of '6E' in new EV
* CRISIL Ratings sees auto component industry's FY25 sales growth down to 6-8%
* HC upholds arrest of Amtek Auto's Dham by ED in INR-250-bln bank fraud case
* Honda Motorcycle Nov sales 472,749 units; Apr-Nov sales 4.23 mln
* SFIO finds Hero Electric, 2 other cos fraudulently availing FAME-II subsidy
* TVS Motor arm to sell injection moulded plastic division for INR 2.15 bln
* Maruti Suzuki Nov total production volume at 168,286 units, up 14% on year
* M&M total sales 79,083 units in November
* Ashok Leyland Nov total vehicle sales 14,137 units, flat on year
* Bajaj Auto Nov total vehicle sales up 5% on year at 421,640 units
* Honda Cars India Nov domestic sales tumble on year, exports rise 81%
* Hero MotoCorp's total sales down 6.4% on year at 459,805 units in Nov
* Eicher Motors Royal Enfield sales up 2% on year at 82,257 units in Nov
* Uptick in PV sales drives Tata Motors total volume Nov; CV sales slightly dn
* Maruti Suzuki Nov sales up 10% on yr at 181,531 units led by SUVs, exports
* Eicher Motors Nov CV sales up 7% YoY at 5,574 units led by light, medium CVs
* E-vehicle, 2-wheeler volumes boost TVS Motor's total sales in November
* Hyundai Motor total sales down 7% on year at 61,252 units in November
* Escorts Kubota tractor sales down 9.4% on yr at 8,974 units in Nov
* M&M incorporates step-down subsidiary Steer Hybren
* TVS Motor acquires additional 39% in DriveX Mobility for INR 978 mln
* Samvardhana Motherson arm to buy 95% stake in Japan co Atsumitec for $57 mln

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 Rajeev Pai

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