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Auto stocks to be in focus on Tuesday's trade
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SME Times News Bureau | 30 Nov, 2020
As the country's stock markets recommence trade on Tuesday after an
extended weekend, analysts believe that automobile, manufacturing and
utilities stocks will be in focus during the upcoming session.
Analysts cited that market would react to the better-than-expected September quarter GDP data.
"The
sectors that would remain on investors' radar on December 1, Tuesday,
could be agriculture, manufacturing and utilities as these sectors
reported positive Gross Value Added (GVA) according to Q2 GDP data,"
said Gaurav Garg, Head of Research, CapitalVia Global Research.
"Growth
in the agriculture sector was 3.4 per cent, while growth in the
electricity sector was 4.4 per cent in Q2 of this financial year."
Last
Friday, official data showed that India's GDP contracted 7.5 per cent
in the July-September period, as the economy rebounded from a record
slump of 23.9 per cent in the previous quarter due to slowdown caused by
the coronavirus pandemic.
This figure was higher than anticipated by the market.
Besides, automobile companies are expected to come out with healthy sales results for November.
The main festive season of 2020 ended last month and investors expect healthy sales performance from the sector.
"Auto
companies will be in focus as November sales data will start coming
from Tuesday, while banks or financials will be in focus as the RBI's
Monetary Policy is scheduled for Friday," said Siddhartha Khemka, Head
of Retail Research, Motilal Oswal Financial Services.
The festive
season boost, along with low base and pent-up demand, accelerated
domestic passenger vehicles' sales in October on a year-on-year basis.
As per the industry data released earlier this month, passenger vehicles sales rose by 14.19 per cent in October.
The category includes sub-segments of cars, utility vehicles and vans.
A
total of 3,10,294 passenger vehicles were sold in the domestic market
from an off-take of 2,71,737 units sold during the like period of 2019.
Besides,
analysts pointed out that interest rate sensitive stocks like banking
will be in focus during the latter part of the week in conjunction with
the Reserve Bank's monetary policy review.
The RBI MPC is scheduled to announce the last review for the calendar year 2020.
"Later
in the week, rate sensitive sectors like banking and metals might
witness increased momentum as RBI's monetary policy is scheduled on
Friday," Garg said.
Market watchers opined that the RBI will maintain both repo rate and accommodative stance.
Vinod
Nair, Head of Research at Geojit Financial Services said: "Markets are
awaiting outcome major events like RBI policy meeting, release of
Manufacturing and Service PMI and banking business data which will be
decisive factors driving the market in the upcoming week."
India's benchmark equity indices were closed on Monday due to it being Guru Nanak Dev's birth anniversary.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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78.25
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75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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