Bullish on auto ancillary stocks: Deepak Shenoy

In a chat with ET Now, Deepak Shenoy, Founder, Capital Mind, shares his views on auto ancillary.

ET Now: What is on your radar right now, what is it that you are looking to buy?

Deepak Shenoy: A couple of interesting things have happned in the last week, which has changed the liquidity deficit in the economy. We have been on a deficit mode, banks have been borrowing overnight from RBI for a really long time and that situation just turned itself around, about a week ago banks were lending to the RBI.

Banks were putting money back into the RBI because they had excess cash that they did not want to lend out and even now that situation and the call rates have fallen to about 7-7.5%.

I think this probably prompts to an easing of liquidity potentially higher credit in parts of the economy that will grow and one of them is that the monsoon has kind of turned around. It is still quite about 11% or 12% in deficit but this might actually have a big impact on two wheelers, however, Hero MotoCorp is not really cheap right now, so they are the ones that I will be looking at to get in a lot of auto ancillary range as well.