The Hindu Business Line : Auto stocks up on Q1 hopes

Expectations of strong Q1 numbers drove up auto stocks. The auto sector, which saw strong sales volumes during the first quarter, recorded a double-digit growth in almost all segments. The quarter, say analysts, has witnessed a reduction in excise duty on small cars, a Supreme Court ban on overloading of commercial vehicles and a few new launches.

Stock broking sources expect auto companies to deliver good financials on the back of healthy sales. However, steeper material prices are very likely, a factor that will have to be dealt with through greater production.

Bajaj Auto, Tata Motors and Maruti Udyog are expected to remain on marketmen's radar on the large-cap side, while Ashok Leyland is likely to secure their attention on the mid-cap side.

However, most of the gains recorded in recent times were eroded on Tuesday, after Hero Honda announced its result, which fell short of expectations of some marketmen.

Nilanjan Dey

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