Its time to say Goodbye to Automobile Stocks. Tata Motors and Mahindra & Mahindra have been downgraded to a SELL by Merill Lynch.
Tata Motors will be impacted by strong headwinds of restricted financing in commercial vehicles and the low priced Nano car. The major reasons for the downgrade are – moderation in commercial vehicle sales on tight financing availability, margins decline on adverse sales mix and lower volumes, forex losses on weaker rupee and fallout impact on inter-related subsidiaries. (more…)