Not bullish on auto component companies; hold for later: Ambareesh Baliga

In a chat with ET Now, market expert Ambareesh Baliga, shares his views on auto component companies. Excerpts:

ET Now: In the auto component companies, there are stocks like an RK Forging or a Fiamm and a couple of small companies like Lumax autos. We had the management saying that order books are looking fairly strong. What is your outlook here and do you like any stock in particular? A lot of them are talking about promise being there for the next two-three years?

Ambareesh Baliga: That is what normally happens in a bull market. You first have top companies moving up and in this case we had Bharat Forge, Motherson Sumi and a host of other companies moving up initially. Then people started looking for the second rung ones and the third rung ones and that is exactly what has been happening for the last three to four months. People are coming down the rung, because of which, you have seen some of these stocks moving up quite sharply.

But at this juncture, I will not be too bullish to buy. It is a hold possibly, but not a fresh buy at this point of time.