If inflation data surprises on the upside, then it could affect market sentiment, cautions Sanjeev Prasad, MD and co-head, Kotak Institutional Equities. Though the Reserve Bank of India not changing its stance yet may be good news for the markets, he told CNBC-TV18.
On specific sectors, Kotak Institutional Equities does not like two-wheeler manufacturers at the moment. “We do not like two-wheelers, barring Bajaj Auto to some extent because it’s more of an export story, but there are serious concerns given that it’s a highly penetrated market, so volume growth will slow down as we go forward, there will be disruptions from electric vehicles (EVs) coming in,” he said.
“However, there is only one player which is Maruti Suzuki, but it too has some challenges in both short and medium-term,” Prasad said.
For the entire interview, watch the video