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Deepak Shenoy bullish on auto socks for 2019

Updated : December 18, 2018 06:13:49 IST

The latest analysis and commentary by stock market guru Deepak Shenoy on what is moving the markets today.

Deepak Shenoy said at this point the market has been driven by relatively lower liquidity.

"There is a bit of surprise in the participants but typically after January 15, there is very light trading trying to go up. December is usually a positive month if you look across the last 23 years," Shenoy said.

Some of the big triggers that people were afraid of has kind of passed, he added.

Shenoy said he is bullish on the auto sector for 2019.

“One sector that I am actually quite bullish on is auto, especially Maruti Suzuki and Hero MotoCorp. The idea here is that right now insurance bumped up the increase in price, it has severely crimped demand at least for the near term and this is causing a lot of bearishness in the stock as well," he said.

But in the next year and year after there is going to see a considerable change when people realise that these prices are here to stay and they are across the spectrum and not just Maruti or M&M, Shenoy added.

"So, till February I expect this crunch to continue and after that, I believe sales growth will be much better both in two-wheelers and in passenger vehicles,” Shenoy said.

“With commercial vehicle space, I am bullish on longer-term maybe five year perspective where I feel it is time to accumulate these stocks. Over time they have corrected some of them. I am also positive on some chemical stocks, especially Tata Chemicals,” he added.
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