Auto stocks are likely to enjoy strong growth for five to six years in a 10-year cycle, said Saurabh Mukherjea of Marcellus Investment Managers.
Mukherjea said the market is trying to absorb the political euphoria around NDA’s emphatic victory and extrapolate as to what the government will do with this kind of a mandate.
At the same time, the market is grappling with realities of weak macro and financial services sector, he said, adding that the scenario was similar in 2014.
"However, this time around, in the next 3-4 months, the government has to make most of this honeymoon period because we are in trouble with the financial services sector and the real economy and so combination of the Budget 2019 and the RBI’s intervention in next 2-3 months is critical or else we are heading for a prolonged downturn," said Mukherjea in an interview with CNBC-TV18.
On banking space, he said that the two private sector banks in which the investors have a degree of confidence and faith are HDFC Bank and Kotak Mahindra Bank.
On metal, he said 60 percent of metal stock prices are correlated with global prices and with slowdown in global growth, we could see a moderation in metal prices.