Prefer Tata Motors: Religare Capital

Patnaik told CNBC-TV18, "M&M UV sales were amazing. We are pushing M&M. We are pushing Bajaj Auto , Tata Motors other than M&M where we are pushing it as a domestic play. We prefer global plays like Tata Motors and Bajaj Auto because of their export driven nature and higher margins over Maruti Suzuki where we believe that the play is essentially a realization play. It is basically a Yen play which is supporting the stock right now. Volume growth levels are considerably lower."

He further added, "We have a 6 percent YTD number for FY14 as well as the management has pointed out you are not likely to see more than 5-6 percent on volumes. So we clearly prefer Tata Motors at this level over Maruti and Bajaj over Hero Honda. Today with the Hero Honda numbers you might see some support for the stock coming in, but we believe it is inventory build-up and these numbers would start rationalizing in a couple of weeks. We maintain our preference for Bajaj in the two wheeler space."