Auto Stocks Outlook for the week (04.06.2012 -08.06.2012)

Auto Stocks Outlook for the week (04.06.2012 -08.06.2012)

Auto stocks are seen flat-to-down in next week on subdued May sales numbers, the recent steep hike in petrol prices, and weakening of the rupee against the dollar. However, Positive on Mahindra & Mahindra Ltd, which reported a 28% rise in total vehicle sales in May. Mahindra & Mahindra is the best of the lot (in terms of May sales). The company's tractor sales grew in May as against fall in the last few months, which came as a welcome surprise. The company sold 19,016 tractors in May, against 18,892 units in the year-ago period. The market will also look out for any announcement on petrol price cut. There have been speculations that oil-marketing companies might cut petrol prices by 1.50-2.00 rupees. Any major development in the global markets could also set the trend for the auto stocks. The BSE Auto Index is likely to trade in a range of 8600 to 8800 in the coming week.