Bajaj Auto is a safe pick in auto space, says PN Vijay, Portfolio Manager.
Vijay told CNBC-TV18, "Auto numbers are like the Curate's Egg, good in parts; Maruti Suzuki has had a problem, and TVS Motor is sluggish. I think the sector will be the first to pick up because it had a very miserable last quarter; it is going to be one of India's fastest growing sectors. If you remember the rally that started in April, if you go through the numbers in March-April 2009 you will find that the quickest off the block were the auto makers because they work on a very sensitive breakeven, so if you get a sluggish steel pricing in the next 5 months as all the experts are saying and if interest rates are flatten out and some sort of consumer demand is created in the economy, Maruti and Bajaj Auto would be great beneficiaries, I feel Maruti could be compelling buy, Bajaj Auto will be nice safe pick."
He further added, "Tata Motors is a most difficult stock to predict because it got so many legs to it; it has got a Jaguar leg to it, its got a commercial angle to which depends on investment in industry etc. So Tata Motors probably is a technical analyst stock. But on fundamentals I think Maruti for some bargain hunting and Bajaj Auto as a blue chip they look like great stocks."
