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Informist, Friday, Jan. 10, 2024

MUMBAI – A tough grind could be ahead for the automotive industry, with shares of companies in the sector expected to trade lower in the coming week due to the selling pressure in mid- and small- cap stocks, analysts said. Some auto stocks are expected to fall prey to profit-booking as well, with December quarter earnings disclosures fast approaching.

Except for Eicher Motors and Bajaj Auto, no recovery is expected for the overall automobile industry, Saral Seth of Indsec Securities & Finance, said. Seth expects companies with diversified portfolios to fare better.

In December, dealers sold a total of 1.76 million units, down 12.5% on year, data released by the Federation of Automobile Dealers Tuesday showed. Except for tractors, all the other segments showed negative growth in sales. Two-wheeler sales by dealers fell 17.6% in December while retail sales of passenger vehicles fell 2% on year, and commercial vehicles contracted by 5.2% on year.

An analyst at a domestic brokerage firm expects Mahindra & Mahindra to see more pain hereon, having put up a stellar performance in the year gone by. The analyst expects Maruti Suzuki India to perform better than its peers in the passenger vehicle space.

While the Nifty 50 index fell 2.4% in the last five days, the Nifty Auto index declined 4.1%. The Nifty Auto has also erased most of the gains it made on the back of December wholesale sales data. The index on Friday closed lower for the sixth consecutive session at 23017.75 points, down 1.23%. All the 15 stocks in the Nifty Auto declined over the last week. Ashok Leyland, Apollo Tyres, and Samvardhana Motherson were among the biggest losers.

"The Nifty Auto is expected to face resistance at 23600-23800 points and find support at 22600-22400 points," Mandar Bhojane, equity research analyst at Choice International, said.

TOP HEADLINES

* JBM Auto sets Jan. 31 as record date for share split
* Sona BLW inks MoU for electric tech for drones, automated-guided vehicles
* Tata Motors global wholesale volume up 1%; PV, JLR volume up, CV down 1%
* Tata Motors JLR Oct-Dec wholesale volume 104,427 units, up 3% on year
* Hyundai Motor introduces new, upgraded variants for three models
* HC notice to govt on Maruti Suzuki plea on unclaimed cars at service centres
* M&M opens electric vehicle manufacturing, battery assembly unit in Chakan
* HC gives Ola Electric 6 wks to submit more information to Consumer Authority
* M&M launches top variants of BE 6, XEV 9e at INR 2.7 mln-INR 3.1 mln
* Maruti Suzuki announces blueprint 'e For Me' for electric mobility
* IPO Alert: Indo Farm Equipment ends 27% higher at INR 273.69 on listing day
* Dec auto retail sales dn 12.5% on yr, all segments except tractors falter
* PRESS: Sachin Bansal in talks to sell his $100 mln investment in Ola
* PRESS: Suzuki Motor to acquire 26% in National dairy board's biogas venture
* M&M's total automobile output at 53,361 units in Nov, up 16.62% on year
* Data Alert: India Apr-Dec major ports' freight traffic up 2.7% on year
* Tata Motors' JLR UK sales fall 28% on year to 4,011 units in December
* EV sector does not need newer subsidies, schemes, says minister Goyal

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:

End

Reported by Gopika Balasubramanium

Edited by Ashish Shirke

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