We are negative on M&M and Maruti Suzuki in the auto sector: Dhananjay Sinha, Emkay Global

In a chat with ET Now, Dhananjay Sinha, Co-Head, Institutional Research-Economist & Strategist, Emkay Global Financial Services Ltd. shares his views about the automobile sector.

ET Now: How would you approach the automobile sector ahead of the event?

Dhananjay Sinha: It is a function of what comes in the budget. If we go sector by sector then with respect to autos we are negatively inclined because we think that the budget would entail an increase of CENVAT by almost 200 bps, so there will be a generic impact on the auto space. But the key concern comes from the fact that there could be increase in the fuel prices and also on the additional duty front with respect to diesel engines or diesel vehicles. So, we are negatively inclined with respect to the auto space. We are negative with respect to M&M and Maruti but we are positive on Bajaj Auto.