• SENSEX
    NIFTY 50
VIDEOS
Auto

Auto sector will only recover from here, says market expert Pankaj Murarka

Updated : October 31, 2019 02:38 PM IST

The automobile sector, in terms of growth momentum, is currently at a 10-year-low, and from here, the industry will only recover, said Pankaj Murarka, founder of Renaissance Investment Managers. Murarka said that he now remains positive on the sector.

"We like auto sector, but we have been avoiding the sector for a while now. However, if you put things in context, if you look at it, this is the first year where we are having a decline in two-wheeler sales in the last 10 years. The commercial vehicles (CV) sales decline of something like 30 percent at the industry level was last seen in 2008 and passenger vehicles decline of 25 percent plus at the industry level is something again which we saw in 2008," said Murarka in an interview with CNBC-TV18.

"The auto sector in terms of growth momentum today is at a 10-year low or probably the worst point in the last 10 years. Things have gone so bad that from here on things will recover and I think the market is taking cognizance of that," he added.

On the market front overall, he said, “While Nifty is at an all-time high, valuations are still modest or reasonable... so, I think the rally has many more legs."

On State Bank of India (SBI), Murarka said, “Over the last 4-5 years, they have been significantly impacted because of the significant provisions they had to do for the bad loans and the corporate loan book but now it is apparent that they are now at the end of the provision cycle. So SBI will get to more normalised profit growth and normalised profit outlook going forward from next year onwards."

 

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
primo org
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more
Live TV