The government intends to ban internal-combustion powered two and three-wheelers by 2023 and 2025, respectively
Analysts believe auto stocks may be range-bound unless their earnings growth turn out to be better than expected.
Ahead of the The Researve Bank of India's monetary policy meeet, interest rate sensitive stocks including the likes of real Estate, NBFCs and auto stocks were trading in the green while banking stocks were mixed with SBI trading positive and ICICI Bank, HDFC Bank and Axis Bank in the red.
The combined inventory value is seen at Rs 12,000 crore. Breaking down the inventory pool, there are 96,000 commercial vehicles, over 6,00,000 two-wheelers, and 40,000 three-wheelers.
Research firms expect better volumes going forward and reiterate their buy call on the stock.
Positive domestic and global cues could push up the indices in early trade on Thursday; Wockhardt could be on investors‘ radar following a warning letter issued by US FDA for its Illinois plant
SGX Nifty trends indicate a mild opening with a positive bias, even as global markets remained mixed awaiting US President Trump‘s Joint Congress address. On the domestic front, the Street could react to better GDP numbers, along with auto sales data that is set to be released today.
The year 2017 seems to have brought cheer in the market with its participants singing what a beautiful world, says Gautam Shah of JM Financial. He expects Nifty to scale to about 8500 level.
In view of the government‘s demonetisation drive, auto companies are being affected and the best way to make most out of the auto stocks is to stick with auto companies with competitive advantage, says Deepak Jain, Auto Analyst at Idfc Securities.
According to experts, the implementation of GST would reduce the on-road prices for price sensitive, entry-level segment, and improve the affordability of the vehicles for the end-consumers.
The supreme court has maintained its order of banning registration of diesel vehicles over 2000 cc engine capacity in the National Capital Region till March 31, CNBC TV-18 reported.
The market ended lowerer dragged by autos and banks. The Sensex was down 207.89 points or 0.8 percent at 25044.43 and the Nifty slipped 72.85 points or 0.9 percent at 7610.45. About 988 shares have advanced, 1661 shares declined, and 211 shares are unchanged.
According to Sanger, there is surplus liquidity in the world and scarcity of growth and India is the only bright spot. Its GDP is expected to move from 5 percent to 6.5 percent in the next few years. He says the outlook for India has improved in past few months.
Stock markets are expected to continue their bull run this week amid robust overseas investments while global cues and quarterly earnings, starting next month, will dictate near-term trend on the bourses, say experts.
Sudarshan Sukhani of s2analytics.com says one should prefer Mahindra & Mahindra (M&M) in auto space, and avoid Bajaj Auto.
Petrol cars are back in vogue as the gap between petrol and diesel prices have now narrowed down by half.
Vibhav Kapoor of IL&FS says auto stocks should be bought on declines because their margins are going to improve going forward.
Ashu Madan of Religare Securities is of the view that auto stocks may underperform.
Ajay Shethiya of Centrum Capital, in an interview to CNBC-TV18 shared his outlook on auto stocks. He said, Bajaj Auto results were in line with their expectations. However, there is limited upside for Bajaj Auto and have downgrade Bajaj Auto from buy to neutral, he asserted.
Sandip Sabharwal, Prabhudas Lilladher upbeat on private sector banks, financial institutions and auto stocks.
The unexpected move by Guangzhou, China's third largest city, to restrict car purchases by putting a cap on vehicle registrations, led to a selloff in auto stocks on Tuesday, with shares of Dongfeng Group and Great Wall Motor falling 6.4% and 3%, respectively.
Market analyst SP Tulsian of sptulsian.com explains to CNBC-TV18 that he is cautious regarding any upswing in stocks across all sectors.
Metal and auto stocks look good at current levels, says Aditya Agarwal, Sr. Derivative Analyst, Way2Wealth.
TS Anantakrishnan, Director, Prime Broking feels investors can invest in auto stocks for long term.
Invest in auto stocks, says P Phani Sekhar of Angel Broking.