Business & Investment

Auto Equity Outlook: Why the upcoming holiday season won’t revive the fate of auto stocks

By Ashutosh Joshi and Akshay Chinchalkar


Investors relying on India Coming festival season To help revive the fate of the country Car stocks You can be disappointed.

The risk of lower than normal monsoon rains and imminent third coronavirus waves affecting local demand Indian car maker. This is in addition to rising input costs and the semiconductor shortage problem facing the global automotive industry.

The gauge of Indian car stocks has fallen 2.5% by this quarter. This is BSE Ltd. Is the only loser in the 19 sector groups. Benchmark S & P BSE Sensex I recovered 12% during this period, MSCI World Automobiles Index It has increased by 3.4%.

Bloomberg

Passenger car sales According to Amit Hiranandani, an analyst at SMIFS Ltd, India’s ending September quarter is weak, showing demand for the festival season, which usually begins in October.

To make matters worse, due to production challenges, customers have already had to wait up to four months for vehicle delivery, which means that it is uncertain whether orders will be fulfilled during the holiday season. ..

Auto Equity Outlook: Why the upcoming holiday season won’t revive the fate of auto stocks

https://economictimes.indiatimes.com/markets/stocks/news/why-upcoming-festive-season-may-not-revive-fortunes-of-auto-stocks/articleshow/86251365.cms Auto Equity Outlook: Why the upcoming holiday season won’t revive the fate of auto stocks

Back to top button