Auto Sales Numbers

Nifty Auto Index tanks nearly one percent as shares of index were under pressure on the back of lower than expected November sales number

1. Maruti Suzuki:

Expectations:

Nomura had expected near around 14 pct hike in sales number year on year, while Motilal Oswal expected 16.5 percent growth at 1.28 lakh units. Motilal Oswal said in their report that Baleno has received overwhelming response and bookings crossed 25000 units from the day of launch.

Actual:

The country’s largest car manufacturer Maruti Suzuki today reported lower than expected November sales numbers due to fall in the mini car segment, Sales hike, 9.7 percent as sold 120824 vehicles against 110147 vehicles in the same month last year.

Domestic sales up by 10.6 percent Y-o-Y to 1.1 lakh units, Exports marginally rise by 1 percent.

Maruti reported disappointing numbers due to in the mini car segment as Mini cars sales tanks by 4.7% compared on a yearly basis which stood at 35,981 units. Mid-size car segment sales rise 5.3 percent stood at 5509 units and in compact cars segment sales hike 19.5% at 44626 units. Utility vehicle sales hike, 57.5 percent.

FROM TECHNICAL FRONT:

Today stock will dip nearly 2 percent on lower than expected sales figure, trend line seen in daily charts, more selling pressure could be seen further if able to give a breakout of the trend line. For now 4492 will act as near term support and 4700 will work as resistance.

 2. Eicher Motors:

Expectations:

Nomura expected 52.5 percent sales growth of RE i.e. Royal Enfield while Motilal Oswal has high expectations of 67 percent growth in Royal Enfield.

Actual:

Eicher Motors reported a 48 percent hike in the Royal Enfield sales number which was lower than expected sales number for the month sold 40769 units. While growth of 52 percent reported in which engine capacity up to 350cc and growth of 13 percent in which engine capacity more than 350 cc.

Exports rise by 33 percent stood at 457 units against 344 units in the same month last year.

FROM TECHNICAL FRONT:

Shares of Eicher Motor tanks as reported below than expected sales number, stock is currently trading near its support, i.e. of 16174 and breakouts could be seen in next trading session while 17050 is immediate resistance for stock.

3. Ashok Leyland:

Expectations:

Nomura expected segment growth of 25 percent in Medium and heavy commercial vehicle while Motilal Oswal expected 29% growth in total sales on a yearly basis.

Actual:

Ashok Leyland reported a 16 percent rise in November sales number which is lower than what Nomura and Motilal Oswal had expected. The company had sold 8971 units in the last month.

MHCV i.e. Medium and heavy commercial vehicle sales up 21 percent at 6297 units and LCV i.e. light commercial vehicle sales increased 6% to 2674 units compared on a yearly basis.

FROM TECHNICAL FRONT:

Ashokley shares tanks and closed near its support, the trend of the stock is bullish but for short term stock may remain under pressure due to November sales number. 92.80 is immediate support, and 97.20 may act as a resistance.

 4. M&M

Expectations:

  • Nomura expected growth of 25.7 percent on a yearly basis on the back of favorable base and new launches in utility vehicles (TUV 3OO).

Actual:

  • M&M sales for the November month hike, 21 percent stood at 41590 units from 34292 which lower than what Nomura expected.
  • Domestic sales up by 23% stood at 39383 units. Exports grew marginally 1 percent at 2207 units in the last month.
  • Passenger vehicle sales up 36% at 19662 vehicles and utility vehicle sales up 37% to 18,686 vehicles compared year on year basis.

FROM TECHNICAL FRONT:

  • M&M stock ends on a flat to positive note. Fresh buying could be seen if able to give breakouts and sustain above its resistance, i.e. 1385 (which can be seen in daily charts). For now 1349 will act as an immediate support.

Daily News Alerts:

NEWS UPDATE: MARKET IS SHOWING KNEE – JERK REACTION; NIFTY IS LIKELY TO GET STABLE ALONG WITH OTHER LARGE AND LID CAPS STOCKS.

POLICY UPDATE: RBI KEEPS RATES UNCHANGED; REPO RATE AT 6.75 PERCENT. KEEPS GROWTH FORECASTS AT 7.4 PERCENT. CPI COULD INCREASE MILDLY FROM HERE IN NEAR TERM. ASKS BANKS TO REDUCE INTEREST RATES FURTHER AS THEY ARE NOT TRANSMITTING EARLIER RATE CUTS.

RBI POLICY UPDATE: RBI IS SCHEDULED TO UNVEIL ITS POLICY AT 11 AM TODAY; IT IS EXPECTED TO HOLD ON TO ITS RATES. MARKET WOULD REACT NEGATIVELY IF RBI COMES UP WITH HIKE IN ANY OF THE FOLLOWING RATES LIKE CRR, SLR OR REPO.

US UPDATE: CHICAGO BASED PMI AND PENDING HOME SALES DATA WENT DOWN SUGGESTING UNEVEN GROWTH IN US; THIS WEAK DATA HAS PUSHED GOLD TO A HIGHER ORBIT. GOLD IS LESS LIKELY TO SUSTAIN AT ABOVE LEVELS AND IS EXPECTED TO COME BACK TO ITS DOWNSIDE SUPPORT OF USD 1143-40 ONCE.

NEWS UPDATE: INDIAN MARKETS OPENED UP. NIFTY OPENED ON A HIGHER NOTE ON THE BACK OF GOOD Q2 GDP GROWTH DATA. INDIAN ECONOMY GREW BY 7.4 PERCENT IN THE QUARTER ENDED ON SEPTEMBER. GROWTH IS LED BY MANUFACTURING SECTOR. IOC REDUCED PETROL AND DIESEL PRICES WHILE INCREASES NON SUBSIDIZED LPG PRICES BY RS 62 PER CYLINDER. JSW STEEL HAS BEEN FINED BY US DISTRICT COURT. AIRTEL ANNOUNCES ITS BIG INVESTMENT PLAN ‘BIG LEAP’ OF RS. 60000 CRORE EXPENDITURE IN NEXT THREE YEARS. CAPITAL GOODS AND HEAVY INDUSTRIES STOCKS ARE EXPECTED TO GAIN TODAY. CHINESE MFG PMI WENT FURTHER DOWN; BAD FOR MARKET AND COMMODITIES; NIFTY MIGHT LOSE ITS INITIAL GAINS IN THE SECOND HALF.

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