Wait and watch for two wheeler stocks: Shashank Khade

Shashank Khade, Executive Vice President-Portfolio Management Services, Kotak Securities, talks to ET Now on various stocks.

Two wheelers what is the view suddenly the one space that was a sub sector within the auto space and everybody was hiding into is now seeing correction and seeing quite a bit of it?

Over the last year the two wheeler stocks really remained resilient while the markets were correcting and they remained resilient clearly because there was no impact of slowdown in any of these companies monthly numbers.

So the first sign of weakness in monthly numbers clearly the stocks have started to correct and more importantly while the stocks remained resilient during the last year a lot of linearity in growth was being assumed and once that starts happening a higher PE multiple starts getting attributed.

So stocks right now are readjusting the PE multiples given the fact that the growth trajectory is now slowing down and the growth expectations are now tapering off so clearly these stocks are getting into this corrective mode because of this realignment of expectations right now.