Would look to add in the automobile baseket: Vetri Subramaniam, Religare Mutual Fund

Vetri Subramaniam, Head - Equity Funds, Religare Mutual Fund, in a chat with ET Now talks about the auto space.

With the weakness that we are seeing in the entire auto basket right now, does it seem that all the bad news is already priced in? How much more downside do you see for the space now?

Short term is hard to say but we are seeing stocks in the automobile basket which have reached valuations which are pretty reasonable given the prospects for volume growth over a 3 to 5-year period. They have got issues to battle with in terms of raw material price pressures and consumers might react to higher oil prices as well. But if you look out over a 3 to 5-year period, the growth rates that they could see in their businesses, valuations are quite far and incrementally we would look to add in the automobile baseket.