ICICI Securities cautious on auto sector

Anantha Narayan, Co-Head Equities, ICICI Securities Limited is cautious on auto sector.

Narayan told CNBC-TV18, "The auto sector has been one sector that we have been slightly cautious on and again broadly two reasons, one is last year was a great year for the sector, so the base effect is always going to be a bit of a challenge for the sector. Second is input prices are going to put pressure on margins and earnings for the sector. So again irrespective of what happens in the budget, that is a sector where I would still remain a bit cautious on."