Don't see auto ancillaries as a space performing well: Tirthankar Patnaik

In a chat with ET Now, Tirthankar Patnaik, Religare Capital Markets Ltd, shares his views on auto ancillaries.

ET Now: What about auto ancillaries and we spoke about the auto space but probably driven by the replacement demand that the sector is seeing, are you more bullish there?

Tirthankar Patnaik: No, we will not be playing auto ancillaries at this point. Some of the stocks that we like from core fundamental perspective are Bosch but other than that we are not playing auto ancillaries at this point. We are not positive on consumption going forward and therefore consumer discretionaries as a space is something that we will be cautious about.

We do not see things happening there, so auto ancillaries at this point, we do not see them actually performing in this particular scenario. Because they will be squeezed by OAM and as demand remains fairly sluggish, we do not expect demand for two wheelers we have to about 5% to 6% demand, for cars we have 5% to 6% demand. So in this scenario, we do not really expect auto ancillaries as a space to perform very well, frankly.