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This market expert believes the worst for the automobile sector is yet to come

Updated : June 27, 2019 12:21 PM IST

Ajay Srivastava, chief executive officer of Dimensions Corporate Financial Services, on Thursday said that the worst for the automobile sector, which has been hit by a massive slowdown, is yet to come.

In an interview with CNBC-TV18, he said that the demand for auto "is horribly low and June quarter is expected to be very bad." "The house currently is short on most auto stocks. The worst for the sector is yet to come," Srivastava said.

“The clear path is that if you need to be in equities, you just need to be in three-four places, which are the market leaders in every industry because they have all done well. The question is do you want to risk capital with revival and value stories and the answer is still no,” he added.

Talking about portfolio allocation, he said, “If you are starting from zero base from this point of time, around 20-25 percent should be real estate because that is on the cusp of turnaround, 30-35 percent in equities and 35-40 percent should be in cash with which you can buy gold or equities."

With regards to real estate, he said it would be advisable to avoid the housing finance company route.
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