In December 2021, dispatches for auto dealers continued to be a mixed bag. While wholesale volumes of passenger cars, two-wheelers and tractors declined year-over-year, the commercial vehicle segment continued its gradual recovery. According to the latest monthly sales figures, Maruti Suzuki’s total volumes declined 4% year-over-year in the past month, driven by a 13% decline in domestic passenger car volumes. M&M’s domestic PV volumes are up 10% year over year, while Tata Motors’ domestic volumes are up 51%. Among the unlisted companies, Hyundai Motors reported a 32% annual decline in domestic volumes. MG Motors reported a 36% decrease in volume while Kia Motors reported a 34% decrease in volume. Renault-Nissan and Honda also reported a volume decrease of 8-17% year over year. In terms of two-wheelers, Hero Moto total volumes are down 12% year over year; TVS Motors’ total sales fell about 8%; Bajaj Auto’s two-wheeler total sales fell 6%.
However, Royal Enfield’s total volumes increased by 7%. On the stock exchanges, shares of auto and utility companies got into a fast lane yesterday with individual stocks up as much as 8% on the day. So, should you add these stocks to your portfolio? On dips, analysts suggested. The sector, and especially the two-wheeler makers, isn’t quite out of the woods yet. Aside from continued price increases and rising fuel costs, a possible third wave due to the Omicron variable, could limit consumer spending, warns Ashwin Patil, senior research analyst, LKP Securities. According to the technical charts, the Nifty Auto index could rise by about 4% from current levels while the individual stocks selected could see a rise of up to 9%. Fundamental and technical parameters clearly show a limited rally for auto stocks, as the scarcity of semiconductor chips, price hikes, expensive two-wheelers and steady resistance zones on technical charts spoil short-term sentiment. Now, it will direct the path of the market when arriving at Tuesday’s trade setup and news flow for stocks, global economic data points and FII activity. yesterday, BSE Sensex The index rose to over 1,000 points on the day during the first trading session of CY2022. In the end, it settled at a high of 929 points at 59,183 points. the Nifty 50On the other hand, it closed at the level of 17626, up 272 points, amid widespread buying.
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