We are on course of cyclical recovery: Ajay Bodke, Prabhudas Lilladher

In an interview with ET Now, Ajay Bodke, Head-Investment Strategist & Advisory, Prabhudas Lilladher, shares his view on auto space. Excerpts:

ET Now: For the month of August, auto despatch numbers have been very impressive. What does that indicate? How should one read into that?

Ajay Bodke: The numbers that have come out of especially Maruti numbers indicate that the cyclical recovery clearly has kicked in and over the next six to nine months as the inflation starts coming off as per the trajectory that RBI has set in, the market will start building in a rate cut towards the fag end of the current financial year.

At that same, it will time aggregate demand in case investment cycle starts picking in by the fag end of the current financial year. So, we are well on course of a cyclical recovery and one should position one's portfolio in terms of a judicious mix of good quality cyclicals.

There is also some defensive names because the US economy is picking up steam and the global economy is also in up move.