Kotak Mahindra AMC’s Nilesh Shah has an ‘equal weight’ stance on the auto sector, and he expects the demand for two-wheelers to sustain.
“We have been equal weight auto and within that our preference has been more towards two-wheelers and passenger vehicles rather than commercial vehicles,” Shah told CNBC-TV18.
“We believe within auto space it is extremely important to focus on rural recovery. Auto stocks have risen a lot from the bottom but the real question for auto is if the demand sustainable or the rise in demand in October and November is function of the pent up demand,” he said.
According to him, demand for two-wheelers, entry level to mid-level passenger vehicles demand can sustain.
On agri and agro chemical stocks, Shah said he expected strong growth, but much of that was already reflecting in the stock prices.
On the market as a whole, Shah said September quarter earnings were ahead of expectations and that at 23-24 times forward earnings on the Nifty, the market was not expensive.
For entire interview, watch video