Be selective on auto stocks: Sadanand Shetty

In a chat with ET Now, Sadanand Shetty, Vice President and Sr. Fund Manager, Taurus Asset Management Company, gives his views on auto sector.

What is the view on the auto segment?

If you look at companies that have done well are basically the leading passenger companies and leading CV companies. But CV companies which have done well are basically driven by international operations where we have seen sustained upgrades in the companies’ earnings. We also have seen a major movement in the passenger car companies but we do not think a rate cut itself is enough. This could only impact the top line. One has to look at the operating cost and profit as well. General assumption is that 2 wheeler will have a mutual growth this year. Definitely this offers an opportunity but we would be pretty selective in that space.