Festive season likely to trigger turnaround for auto stocks: Dhiraj Sachdev, HSBC AM India

In a chat with ET Now, Dhiraj Sachdev, Senior VP & Fund Manager-Equities, HSBC AM India, shares his views on the auto stocks.

ET Now: Are the auto companies in a sweet spot at the moment? Auto sales have revived, and the big trigger — rising demand around Diwali and Dussehra — will be kick in now. How do you see things shaping up for the auto stocks?

Dhiraj Sachdev: There is an expectation of positive developments in the sector. We have already seen better car numbers on the volumes side, despite this being a lean season.

Commercial vehicles have not picked up yet, though LCVs and smaller vehicles have. But we do expect that the CV cycle too will have a back-ended kind of growth going forward.