Interest rate peaking next trigger for auto sector: Expert

Auto companies have started releasing their November sales figures. Mahantesh Sabarad, senior vice president-institutional equity research, Fortune Equity Brokers spoke to CNBC-TV18 about his outlook for the sector now.

He says that he expected better from Maruti, but M&M's sales figures give a huge boost to confidence in the company. Sabarad expects Tata Motor's new micro-trucks, Ace Zip and Magic IRIS, to push up yearly sales for the company apart from the Nano working its magic.
He says that the two-wheelers could see some pressure on profitability as growth moderation sets in and that could lead to the stocks being underperformers in the sector.
"Interest rate peaking out is the next trigger to watch out for the sector," Sabarad says. Below is the edited transcript of the interview. Also watch the accompanying video Q: What have you made of the Maruti numbers, gives you some reason to smile?
A: I am actually contrarian here. I didn