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videos | IST

Canara Robeco MF remains structurally positive on auto space

In an interview to CNBC-TV18, Nimesh Chandan, head-investments and equities, Canara Robeco MF, shared his reading and outlook on specific stocks and sectors.
On auto sector, Chandan said the sector has seen some kind of a slowdown and there have been various reasons for that in the last quarter.
The rise in oil price and liquidity issues in the NBFC sector have impacted auto sales he said, adding that when such a slowdown comes in, there will be some pressure on companies' margins.
"However, if you see in the last 15 years the automobile industry in India, both two-wheelers and passenger vehicles, have seen cycles where growth rate in some years have been as high as 20 percent plus and in some years we have seen a more muted kind of low single-digit growth," he added.
Going forward the auto sector as a structural story would continue as there will be higher penetration of autos in the country, Chandan said.
"Once we see liquidity back and interest rates a little more benign, the demand side will also improve," he said.
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