Auto stocks a tough call at the moment: Kunj Bansal

In a chat with ET Now, Kunj Bansal, ED & CIO, Centrum Wealth Management, shares his views about the auto sector stocks.

ET Now: A lot of people are now also betting on the domestic consumption theme. It is being said that after the elections if there is a stable government, the entire cycle is going to get kick-started, and that a revival is on the cards. In such a backdrop, would you bet on any of the domestic auto stocks at the moment?

Kunj Bansal: If we look at the April numbers, there are clearly contradictory signals. The numbers from Maruti and M&M were lower than the last year’s April. Surprisingly, M&M’s tractor sales have also been down by 10%. At the same time, Hero Motors has reported increased growth in motorcycle sales. So, it is a difficult call. The auto sector is one which does not offer you a reasonable combination of investment opportunities as of now. One will have to be very selective. I do not think I would have any names to recommend as of now.