Auto stocks need a bump up in demand to perform better: Ambareesh Baliga

In a chat with ET Now,Ambareesh Baliga, Market Expert, shares his views on move of extedning excise duty sops for the auto industry.

ET Now: The Finance Ministry has decided to extend excise duty sops for the auto industry beyond 31st of December that is great news but auto stocks today have not moved after that news came out?

Ambareesh Baliga: This is what has been continuing now for a while and despite that we saw that even in the festive season that the demand really did not move up as expected.

Unless you really see a bump up in the demand I do not think the auto stocks will really perform because if you look at the last eight-nine months most of the auto stocks have performed and seem fully priced. The excise cut continuing will not be a great reason for people to start going out and buying new vehicles again or possibly increasing in the demand.