Auto sector is showing signs of fatigue and slowdown, said Rahul Singh, CIO-Equities, Tata MF, in an interview with CNBC-TV18, adding that the companies are facing issues like lack of urban demand, lack of new product launches, etc.
However, Singh said that the commercial vehicle space could see some recovery because of pre-buying before BS-VI norms come in place. "So one cannot have a uniform view on autos as a sector," he said.
Singh said the market is now excluding the possibility of a hung parliament. The chances of having a weak government have receded and it is reflecting in market moves.
According to him, there is value in utilities, corporate banks, etc.
“We should not paint the entire market move with the same brush and say that the move is over and we are not going to see any further upsides,” he said, adding that one would see some selective upsides.
"However, IT sector would give steady to moderate returns this year and so the house has a neutral stance on it. The sector will see some earnings upgrade but not valuation rerating like last year," he added.