Interest rate sensitives would do well in auto sector: Arindam Ghosh, BlackRidge Capital Advisors

In a chat with ET Now, Arindam Ghosh, CEO, BlackRidge Capital Advisors, shares his views on the current outlook of the auto market. Excerpts:

ET Now: Maruti, M&M and some two wheeler companies have performed well this earnings season. Is it time for autos to begin their move up?

Arindam Ghosh: Yes, clearly auto is one space where some companies are facing bulk of the rural India—they derive a lot of their top line revenues from that part. Many of these names that are linked to rural consumption would continue to do well. Also, some kind of currency benefit kicking in would also help with a fair share of global market.

Within that space, there are extremely strong names—one should continue to maintain position in these stocks going forward. Even some of the auto ancillaries names are being good prospects and good buys.

Despite being in a rate tightening cycle, as a sector, some of these interest rate sensitives would continue to do well; we would get to see at the end of this rate hike in a couple of quarters from now.