The market is likely to be rangebound until general elections, said Harsha Upadhyaya, CIO-Equity at Kotak MF, adding that the auto sector will continue to underperform in the near-term.
"Volume growth for most segments of auto companies has been subdued," he said.
He said that the asset quality woes for corporate private banks were decreasing. “For years the corporate facing private sector banks and also PSU banks were facing a lot of headwinds in terms of asset quality trends. Now that seems to be stabilising. So we are bullish on corporate facing private sector banks," he said.
When asked about budget, Upadhyaya said, “In an election year it is fair to expect that the budget is going to be somewhat expansionary in nature and most of the market participants are expecting some sort of initiatives in the segments where some stress is building up.”