Overweight on the ancillaries and underweight on the auto at this point: BP Singh

In a chat with ET Now,BP Singh, Executive Director & CIO-Equities, Pramerica Mutual Fund, shares his views on auto ancillaries.

ET Now: We have seen a great run in auto ancillaries, when do you think the pure line auto majors would actually catch up?

BP Singh: Auto ancillary companies needs to be looked differently from auto companies because the auto ancillaries companies are a big exporters.

If you see the US economy, which is now reviving, is producing good numbers of autos which is quite encouraging and very good. Now, that is a good news for the auto ancillary in India. In India, the economy is recovering and the auto sector will participate in some day at a later date.

So, we are very positive on ancillaries in fact in our portfolio, we are overweight on the ancillaries and we are underweight on the auto at this point.