Au­toS­tocks MaySee Rer­at­ing as Mon­soon Hopes Lift Prospects

The Economic Times - - Companies -

nicely spread across months as well as re­gions, which is a very good sign. While the over­all ef­fect of the mon­soon on cash flow will take ef­fect in the sec­ond half, there is an ex­pected la­tent de­mand and pos­i­tive sen­ti­ment around mon­soon does gen­er­ate buy­ing. We an­tic­i­pate a 10% rise in trac­tor sales in the first quar­ter, based on the ac­tual mon­soon we can de­ter­mine the full year forecast,” added Je­jurikar.

Mir­ror­ing the en­thu­si­asm in the trac­tor in­dus­try, even two-wheeler mak­ers ex­pect an up­side. Mar­ket leader Hero Mo­toCorp ex­pects the mar­ket to turn around in the sec­ond half of FY17.

YS Gu­le­ria, se­nior VP, sales and mar­ket­ing at Honda Mo­tor­cy­cle & Scooter In­dia a l s o c o n f i r med this. “We were ex­pect­ing the twowheeler mar­ket to g row by 4-5% in FY17, thanks to the good news on mon­soon, we would see an up­side of 1-2%,” Gu­le­ria said.

The mar­kets have got a whiff of the chang­ing mood, re­sult­ing in the re­cal­i­bra­tion of share prices of au­to­mo­tive stocks. Subrata Ray, se­nior group vice pres­i­dent at rat­ings firm ICRA says: “The agency had fore­casted for a 4-6% growth for the trac­tors and twowheeler seg­ments.

How­ever, in the event of healthy a mon­soon, with good dis­tri­bu­tion across the coun­try, there could be up­ward re­vi­sion in es­ti­mates for both trac­tors and twowheel­ers.”

Maruti share price added 4.42%, Tata Mo­tors gained 3.40%, M&M surges 7.40% on Wed­nes­day

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