Manish Sonthalia of Motilal Oswal Asset Management, in an interview with CNBC-TV18, shared his views on the outlook for autos, oil marketing companies, capital goods, pharma, etc.
According to him, the weak two-wheeler sales number reported by auto companies were mainly due to insurance hike, liquidity issues, safety norms (ABS) and emission norms (BS-VI). "All this will impact the sales for the whole of the year but it is not yet time to move out of the sector completely," he said, adding “one will have to play through the entire transition of slowdown, which is impacting the sector as a whole".
With regards to oil marketing companies (OMCs), he said, “The valuations for the companies are just not coming back even though gross marketing margins are close to Rs 4 currently on petrol and diesel."
There is need for reconfirmation of the fact that the decontrol environment is still intact for OMCs, he said. The OMCs currently do offer value, he said, adding that one was not sure if the re-rating will happen post elections.