*RUPEE DESK-Auto Stocks Outlook for the week (16-20.07.2012)* Looming diesel price hike, announcement of Apr-Jun earnings, and monsoon rainfall are going to lend direction to auto stocks next week. Hero MotoCorp will announce its earnings for Apr-Jun on Thursday.Hero could surprise positively in terms of profitability. Reports of a hike in diesel prices after the presidential polls, which are also due Thursday, have been doing rounds for some time and any significant hike in the fuel's price could cause a knee-jerk reaction in the auto sector especially in Mahindra & Mahindra counter.
Most of Mahindra & Mahindra's models are diesel run. Monsoon rains, which have been 23% below normal so far this year, will also add to headwind for the auto stock counter. If rains continue to be weak it will hit sales of auto, especially in rural areas. Bajaj Auto, which will report its June quarter earnings Wednesday, is seen reporting a meagre 3% rise in net profit. Bajaj Auto stock is seen performing flat to negative. We expects Maruti Suzuki to outperform in the short term, as sees no further hike in petrol prices in the near term. Also, the commencement of the festive season from August will support sales. By RUPEE DESK [email protected] www.rupeedesk.in -- You received this message because you are subscribed to the Google Groups "Kences1- Rupeedesk" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/kences1?hl=en.
