Wait for autos to consolidate: Sanjay Dutt, Quantum Securities Pvt Ltd
The sector has seen record production and dispatches for most of the companies in the last few months.
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| Sanjay Dutt, Director, Quantum Securities Pvt, Ltd, in a chat with ET Now talks about his stock views.
What would you do with the interest rate sensitives currently, be it banks, be it real estate, be it autos and also keeping in mind the festive season is around the corner, probably would you take a play on autos in particular?
No I do not think so. I would wait for them to consolidate and correct. We have seen a substantial run up in the sector. Most of the positives are already in there. We have seen record production and dispatches for most of the companies in the last few months.
Yes, the festive season demand is there, yes, there is no doubt about the fact that if today we went out to buy a sub-10 lakhs or sub-7 lakhs car, you would have to wait 3 to 6 months, that is the reality on ground. But actually, all these positives are already there in the prices and need the sector to consolidate and correct a little before I take any short or medium term positions in any of the stocks whether it is Mahindra, Maruti or telco etc.
On the interest rate sensitives, particularly banks, even there in the short term, we have seen a substantial run up. We would see a consolidation in a correction mode. I am very positive on the financial services sector as a domain play which includes NBFCs, some of the good NBFCs include the banks also, particularly some of good quality private sector banks. But we have seen a good rise in the public sector banks in last 2 to 3 months. Primarily most of the contribution in the rally has come from them in the last 600-700 points - particularly stocks like State Bank of India. They need to pullback a little bit, cool off.
What would you do with the interest rate sensitives currently, be it banks, be it real estate, be it autos and also keeping in mind the festive season is around the corner, probably would you take a play on autos in particular?
No I do not think so. I would wait for them to consolidate and correct. We have seen a substantial run up in the sector. Most of the positives are already in there. We have seen record production and dispatches for most of the companies in the last few months.
Yes, the festive season demand is there, yes, there is no doubt about the fact that if today we went out to buy a sub-10 lakhs or sub-7 lakhs car, you would have to wait 3 to 6 months, that is the reality on ground. But actually, all these positives are already there in the prices and need the sector to consolidate and correct a little before I take any short or medium term positions in any of the stocks whether it is Mahindra, Maruti or telco etc.
On the interest rate sensitives, particularly banks, even there in the short term, we have seen a substantial run up. We would see a consolidation in a correction mode. I am very positive on the financial services sector as a domain play which includes NBFCs, some of the good NBFCs include the banks also, particularly some of good quality private sector banks. But we have seen a good rise in the public sector banks in last 2 to 3 months. Primarily most of the contribution in the rally has come from them in the last 600-700 points - particularly stocks like State Bank of India. They need to pullback a little bit, cool off.
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Yes, credit growth is there, yes, buoyancy would remain in the sector over the next 2 to 3 years but in the short term, we are a tad overbought and over owned.Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
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