Check out: Brokers' view on auto stocks, outlook
Auto shares, which have already underperformed the broader markets this year, amid a sharp slowdown in their sales growth, received another jolt on Thursday when the government hinted at removing the subsidy on diesel used for diesel cars.
August 08, 2011 / 10:45 IST
Moneycontrol Bureau
Auto shares, which have already underperformed the broader markets this year, amid a sharp slowdown in their sales growth, received another jolt on Thursday when the government hinted at removing the subsidy on diesel used for diesel cars. While some analysts say this is a good buying opportunity in select stocks, especially from a long term (at least one year) view point, others would rather stay away given the overall uncertainties in the sector and the broader economic environment.The NSE CNX Auto Index has fallen over 17% in 2011, underperforming the broader Nifty Index, which is down 15% during the same period as auto sales growth has sharply slowed down this year. For instance, twelve out of 19 auto makers in India showed a decline in sales in July. Thursday
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