Auto stocks need to correct more: Sanjay Dutt, Quantum Securities Pvt. Ltd.

Sanjay Dutt, Director, Quantum Securities Pvt. Ltd., in a chat with ET Now, speaks on auto stocks


What would you say about the auto basket? Is the fizz out?

They need to consolidate and correct for a little while more. You have seen outperformance in them for quite sometime over the last year or so or maybe more than that. They continue to be good medium to long-term plays to invest into but in the next 2-3 months you will see underperformance or you will see maximum of neutral performance in the stocks. Most of the uptick is priced in them in terms of demand, etc., etc. There could be huge re-rating in the sector and the stocks if commodity prices really come off and sustain at much lower levels compared to what they are in this level. Then of course the input costs come down but that’s what is the big ‘if’ right now for the whole sector and for a lot of other sectors because the input costs and particularly commodity costs are really hurting them.