stock market today amid the news of Semiconductor shortage in India Market analysts have become quite bullish on auto stocks while bottoming out from the next quarter. In fact, he asked market investors to look at today’s rally in auto stocks from this angle and expect this sharp rise in auto counters to continue. He advised stock market investors to buy quality auto stocks like Maruti Suzuki India Limited or MSIL, Mahindra & Mahindra (M&M), Motherson Sumi Systems and Hero MotoCorp which will be at a discounted price in 2021 after heavy selling due to semiconductor shortage. are available on. He said such good news could act as a ‘double engine growth’ for auto stocks in the short to medium term once the PLI scheme is approved by the central government.
On the reasons why auto stocks are so bullish; Ravi Singhal, Vice Chairman, GCL Securities said, “Auto stocks are rising today after news break of semiconductor shortage in India from next quarter. Since, auto stocks are quoted at a discounted price after a heavy beating in 2021, Semiconductor But there is good news, soon after the approval of the PLI scheme by the central government, it is expected to work as a dual engine growth for auto stocks. One should take advantage of these developments and buy quality auto stocks which will take a heavy beating in 2021. The latter are available at a discounted price.”
When asked about auto stocks that one can buy today, Ravi Singhal of GCL Securities said, “One can buy shares of Maruti Suzuki and Hero MotoCorp as both the stocks are available at discounted prices despite strong fundamentals. These Auto stocks have fallen due to low-Covid-19 lockdown and negative sentiments due to semiconductor shortage.Therefore, one can buy shares of Maruti Suzuki ₹6845 level for 2 month target ₹Maintaining a stop loss at 7250 ₹6720. Those who want to buy Hero MotoCorp shares can buy Gati at current market price for 2 months target ₹maintain stop loss at 3000 ₹2777 each.”
Speaking on auto stocks to buy today; Sumeet Bagdia, Executive Director, Choice Broking said, “Mahindra & Mahindra (M&M) shares can be bought at the current market price for an immediate short-term target. ₹780 to ₹maintain a stop loss of 800 ₹725. Similarly, Motherson can buy Sumi’s shares at the current market price for an immediate target ₹from 240 ₹250. However, stop loss must be maintained ₹210 Taking this position.”
Nifty Auto index rose nearly 0.70 per cent today. Auto major Tata Motors share price rose nearly 2.50 per cent, Balkrishna Industries by 3.7 per cent, Madarasumi by 2 per cent, while Mahindra & Mahindra Ltd or M&M and Maruti Suzuki rose up to 1.50 per cent in morning trade. increased more. Session.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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