Sunil Subramaniam, managing director and CEO of Sundaram Mutual Fund, on Thursday, said that this is the right time to buy automobile stocks as they are likely to bounce back sharply on government stimulus, which is expected soon.
“This is the right time to buy because... once the government announces some kind of stimulus for auto, you will see a sharp bounceback happen because this is a festival season, the monsoon has also recovered from the earlier predictions and the mood will change because auto companies will cut prices," he said in an interview with CNBC-TV18.
Speaking about the banking sector, he said, “Look at the NBFC problems, they are not going to go in a hurry. But the government is getting liquidity to good NBFCs through the banking system. Also, if you see, their NPA cycle is more or less done. Only the PCA banks are still under struggle, but the larger private sector banks, larger PSUs... more or less their problems are done and already credit is growing. If you look at the data output, bank credit to multiple sectors is growing at about 12-15 percent. It is a reasonable expectation that private banks will step into where the retail NBFCs were financing and increase their lending there and there is enough liquidity in the system.”
“Banking sector will continue to show strong numbers," he added.