Auto majors like Maruti, Mahindra & Mahindra are good buying opportunities at current levels, said Ajay Bodke of Prabhudas Lilladher, adding that the house is positive on the auto space from a medium-term perspective.
However, he advised to be cautious on two-wheelers.
With regards to consumer durables, he said one needs to be very selective and can allocate capital towards some of the leading names. "Crompton Consumer and Havells look good," he said.
According to him, the near-term headwinds seem to be impacting price performance of stocks in the interest rate sensitive sectors like autos, auto ancillaries and consumer durable space. "Basically, demand has been tepid, especially for autos because of insurance, higher oil prices, etc. and so manufacturers have been offering high discounts to clear inventories," he said.
Earnings growth revival should happen two quarters from now, said Bodke.