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Informist, Friday, Jan. 24, 2024

MUMBAI – While shares of automobile and auto ancillary companies may trade lower next week, positive momentum could be seen in shares of select large-cap companies, analysts said. Sentiment will also be tested by earnings disclosure by major automobile companies such as Tata Motors, Maruti Suzuki, Bajaj Auto, and TVS Motors. The 15-constituent-strong Nifty Auto closed lower for the third consecutive week, with the index closing 2.7% lower at 22171.05 points on Friday.

In the near-term, Nifty Auto may exhibit some weakness but few stocks have room to rise, said Nandish Shah, technical research analyst at HDFC Securities. He expects Nifty Auto to find support at 22170 and face resistance at 22250. In the coming week, the reactions would be purely based on earnings of the auto companies, as the investors would know where to place their bets, Shah said. Maruti Suzuki India and Eicher Motors are expected to outperform in the coming week, while Hero MotoCorp and Bajaj Auto may be range-bound, Shah added.  

Improved volumes, growth in exports, and price hikes are likely to help the Pune-based Bajaj Auto report an on-year growth for the December quarter, analysts said. However, upward movement in key numbers might be limited to a single digit. The top line of Bajaj Auto is expected to rise by 6.8% to INR 129.46 billion and the bottom line is expected to come in at INR 20.05 billion, up 5.3%, according to the average of 15 estimates. 

The demand trends in the auto sector were largely soft, except the double-digit on-year growth seen at select names such as Mahindra & Mahindra, Eicher Motors, Maruti Suzuki India, and TVS Motors, Emkay Global Financial Services said in a research report. In the two-wheeler segment, domestic growth was moderate after the festival season which was accompanied by a timely pick-up in exports to Africa. However, trends in passenger vehicles were mixed due to high discounts, the report said. 

Out of the 15 stocks on Nifty Auto, only Bharat Forge and Eicher Motors closed higher. Apollo Tyres and Tata Motors were the worst performing stocks on the index this week, with both losing 6.5% and 5.9%, respectively. The benchmark indices also mirrored the losses in Nifty Auto. The Nifty 50 and the BSE Sensex closed down 0.5% and 0.4%, respectively.

TOP HEADLINES

* Earnings Outlook: Bajaj Auto to ride on higher exports, price hikes Oct-Dec
* Analyst Concall: Pdt revamp by large customer to hit Sona BLW in Jan-Mar
* Data alert: Dec domestic air passenger traffic 14.9 mln, up 8.2% on year
* Earnings Review: Sona BLW's Oct-Dec consol revenue growth slowest in 11 qtrs
* Maruti Suzuki to hike prices across models from Feb 1 on inflation pain
* Auto sector's FY26 domestic volume growth may slow down, says India Ratings
* Earnings Outlook: Solid operational metrics may propel InterGlobe's top line
* Mazagon Dock says not signed contract with JNPT for electric water taxi
* Busy Bee moves NCLAT against liquidation of Go First; hearing on Thu
* Ashok Leyland, ESAF Small Finance Bank ink MoU for vehicle financing
* Earnings Outlook: Sona BLW Oct-Dec earnings seen muted on low EV demand
* Hyundai Motor starts assembly of battery packs in new plant at Chennai unit
* Busy Bee to seek legal remedy after Go First liquidation as it plans to bid
* TVS Motor unveils bluetooth-connected 3-wheeler for INR 295,000
* NCLT orders Go First liquidation, appoints Venkatasubramanian as liquidator
* ACMA wants govt to explore trade pact with US to meet $100-bln exports aim
* Uno Minda to expand ASEAN ops, new plant in Indonesia likely in 6 mos - CFO
* BMW India launches all-new BMW X3, ex-showroom price starts at INR 7.58 mln
* JSW MG Motor India unveils new sports utility vehicle MG Majestor
* Hyundai Motor, TVS Motor unveil electric 3-wheeler, micro 4-wheeler concepts
* BYD India launches BYD SEALION 7 eSUV, promotional booking offer till Feb 17
* Auto PLI aided INR 207.15 bln investments, INR 104.72 bln incremental sales
* Maruti to be India's biggest manufacturer of EVs by FY26-end - ED Banerjee
* VE Commercial Vehicles forays into last-mile logistics with Pro X, says CEO
* Hyundai Motor launches Creta Electric at starting price of INR 1.8 mln
* Tata Motors unveils new Sierra at Bharat Mobility Global Expo
* Ashok Leyland unveils last-mile mobility CV Saathi, priced at INR 649,999
* Tata Motors' JLR India Oct-Dec retail sales down 4% YoY at 1,177 units
* Mercedes-Benz India unveils Concept CLA Class, launches new Mercedes-Maybach
* BMW launches first 'Made in India' electric SUV priced INR 4.9 mln
* Hero MotoCorp launches 2 new scooters, 1 motorcycle at Bharat Mobility Expo
* Maruti Suzuki launches e Vitara for domestic market, does not reveal price
* Earnings Outlook: Steady order book, stake buys to aid Samvardhana Motherson

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

US$1 = INR 86.20

Reported by Gopika Balasubramanium

Edited by Akul Nishant Akhoury

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