Stock Market Today: The Nifty Auto index gained more than 2% on Tuesday. Mahindra & Mahindra , Hero MotoCorp, Bajaj Auto , Tata Motors, Eicher Motors and Maruti Suzuki India share prices were among largest Nifty gainer and with up to 5% gains propelled the index
The volume performance for April’ 2024 is likely to remain strong. The to wheeler manufacturers as Bajaj Auto, TVS Motor Company , Hero MotoCorp , Eicher Motors share prices have benefitted tremendously from rebound in demand since October’2023 helped by strong festive sales followed by wedding season, some uptick in rural demand. The April’2024 sales volumes for Bajaj Auto, TVS Motor Company , Hero MotoCorp are expected to follow the trend seen in the earlier months.
Also Read- KFin Tech shares jump over 8% to record high on strong Q4 results
The wholesales are expected to grow at a strong 15-18% year-on-year for TVS Motor Company, Bajaj Auto , Hero MotoCorp as per analysts at Jefferies India Pvt Ltd.
Analysts at Anand Rathi Research also anticipate a strong double-digit year-on-year growth for two wheeler wholesale volumes in April’2024 due to good demand as retail volumes have risen more than 30%. The base also remains favorable and festival timing as further propelled growth.
Passenger Vehicles too are anticipated to see good volume growth with Maruti Suzuki India anticipated to report 11% yoy volume growth and Mahindra & Mahindra automobiles (excluding tractors) growth being pegged at 12% y-o-y as per Jefferies estimates.
Also Read-Shoppers Stop share price gains 5% after Q4 results. Here’s what technical analysts say
The favorable festive sales and good discount ate likely to add to Passenger Vehicle Sales. Even analysts at Anand Rathi Research also expect passenger Vehicle volumes likely to have grown at a healthy pace led by robust retail volumes during April’2024.
Commercial Vehicles nevertheless remain watched for. Though economic growth has remained strong, the high base had been among one of the factors impacting growth. Commercial Vehicles sales are expected to be broadly flattish, better than the previous month, owing to the fading of the high base, said analysts.
Also Read-
Those at Jefferies expect Tata Motors commercial vehicles and Ashok Leyland to report 3-4% year-on-year growth in sales.
Even for tractors, the high base and weak monsoon activity of last year had impacted growth. As all eyes are on monsoon activity in 2024 , the base impact is likely to ease. For now Jefferies expects Mahindra & Mahindra Tractors to report 9% y–y decline in sales during April.
Analysts at Anand Rathi on the other hand expect Mahindra & Mahindra farm sales to grow 1% year-on-year, they estimate Ashok Leyland and Eicher Motors commercial vehilcle saes to see 0-1% y-o-y growth.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions
gained up to 4% and were amongst largest Nifty gain
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
More
Less
Published: 30 Apr 2024, 01:00 PM IST