See pockets of strength in auto sector: Arvind Sanger, Geosphere Capital Management

In a chat with ET Now, Arvind Sanger, Managing Partner of Geosphere Capital Management, shares his views on the Indian market. Excerpts:

ET Now: I do not know how closely you look at some of the domestic cylicals out here but those two have taken a back seat. We discussed about one disappointment and that is energy. What about the recovery in cyclicals that was anticipated but somehow is not seeing the light of the day?

Arvind Sanger: When you look at domestic cyclicals, if you mean some of the companies in the engineering and power space, there does not seem to be much change in outlook and any hope for a quick decision which will fix everything.

It seems to be not coming true but if you look at the auto companies and ancillaries, some of these areas are seeing recovery. There are pockets of strength but they are more driven by end user consumption than they are by government policy making.

Also, we have not seen much demand as yet although industry and businessmen are very optimistic about the current government but we have not seen any follow through in terms of any spending plans and so the capex is not appearing.

I would not paint everything with the same brush and say that all domestic cyclicals sectors, whether it is CV or at least some specialise equipment companies in the industrial space have not participated but it has really become a more bottom up market then making big macro bets on some of these sectors.