Auto stocks under pressure, down 1-3% ahead of November sales data
Auto stocks were under pressure with the Nifty Auto index down over a percent on November 29 ahead of the month’s sales data.
TVS Motor Company, Ashok Leyland, Mahindra & Mahindra, Tata Motors, Eicher Motors, Hero MotoCorp and Bajaj Auto fell 1-3 percent while Maruti Suzuki was down 0.3 percent at the time of publishing this copy.
Overall auto sales are likely to be mixed in November with commercial vehicles, two-wheeler and tractor sales expected to decline compared to a year-ago period and the performance of passenger vehicles better than the others.
Numbers will be announced on December 1 and 2.
“November 2019 wholesales are likely to be a mixed bag with marginal growth in passenger vehicles (PVs) while other segments continue to decline,” said Nomura.
“Our industry interactions lead us to believe that PV retails have been better, benefitting from extended deliveries post the festive season which ended in October. However, two-wheeler (2Ws) retails have remained subdued as rural recovery is yet to play out. MHCV volume decline is likely to remain high at 44 percent YoY due to weak demand and inventory clearance,” the Japanese brokerage added.
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