FINANCE & STOCK ADVICE: Bad Deepawali For Automobile Industry

Negative Impact On Automobile Sales

This festive season was not good enough for the automobile industry to celebrate , instead they would like to have such Deepwali ever again whereby the sales figure went down breaking a 8 years records. Sale of cars fell 14.42% in October. According to the Society of Indian Automobile Manufacturers (SIAM), car sales in the domestic market went into reverse gear in October with a 6.59% fall to 98,900 cars against 1.05 lakh in the same month last year. Motorcycles sales were down 18.17% to 5.38 lakh against 6.57 lakh last year. Similarly,Trucks and buses sales fell 50% to 11,786 vehicles from 23,352 during the same period. The negative sales in October pulled down the cumulative sales growth in the current fiscal to 5.64% for the April-October period from 10.07% growth in the April-September period.

Positive Growth Sector

Scooters and passenger three-wheelers were the only two segments that posted positive growth of 4.4% and 16%, respectively. Exports also grew 41.16% to 1.44 lakh in October against 1.02 lakh the same month last year.

Companies Participating In Fall Of Sales Figure

Market leaders has posted a significant fall in sales including Maruti Suzuki India, whose sales fell 6.4% in, while sales of Tata motors the second-largest passenger car maker, declined 6%.

Companies Shown Growth In Sales figures

Hyundia Motors India has posted a rise in sales by 9.91% in October while GM also posted 25.33% increase in sales.Toyota Kirloskar Motor increased sales on the back of its new premium sedan ‘Corolla Altis’ to 1,110 vehicles in October over 526 sold in the same month last year.

Reason Behind decline in Sales

1. Rise In interest Rate Of Auto Loans

2. Fall In Capital Market.

3. Overall Slowdown In All business sectors including metals , Plastic etc.

4. Rise in Rate of unemployment by increasing termination of employee from corporates.

5. Higher Inflation Rates.

Future Of Automobile Stocks

There is bit tough time ahead for market leaders of this sector but we had to see the steps taken to overcome the situation. Meanwhile any such stock should not be traded in excessive quantity for investment or for delivery trading.

Disclaimer : I do not have any personal holding in this sector.

MULTI BAGGER STOCK GROUP

Some of my group's multi bagger picks during the rally were NMDC , MMTC , STC , Larsen ,Jindal Steel & Power , Unitech , BF Utilities , Jai Corporation , Walchand Nagar Industries, RNRL , Reliance Infra (Reliance Energy) etc.

I had been long associated with a corporate engaged in financial services , where with the assistance of specialized tools along with my special analysis as per some historical accepted theories of stock market like W. D. GANN's Theory , Elliot Wave Theory and others are used with reliable insider information of so called " operators" who play a major role to make a stock ,a Multi Bagger ,I do make my gem picks in this market.

I had been running my group , where the associated people get the reliable and most beneficial to get the unexpected return as seen in the above mentioned tips. Say for example the stock called MMTC had jumped from 2000 level to 56000 per share of historical price where the capital appreciated by 28 times in very short period with 2700% return on capital employed. Likewise in RNRL we started accumulating at RS 25 level from where we saw it moving at 250 level giving 10 times with 900% return.

These sort of return is helpful as ,

1. Handsome gain will make a jack to our capital.

2. Limited stocks trade , as daily trade could be avoided , which is more risky.

3. Long term capital gain , so no tax liability.

4. Whole income in white, which could be further deposited into fixed deposit to get assured monthly income later.

5. Strong income tax file without paying any taxes.

Our role here could be summarized as :

1. Giving tips to all registered member at proper time , when the stock is just about to take off, neither too early not too late.

2. Make sure investor do not gt stuck into it.

3. Recommend to exit when the operator is about to leave it.which is the most important work or else the whole accumulated and deemed profit will be washed away along with part of investment and will remain stuck for long - long period.


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Bad Deepawali For Automobile Industry