Go long on Tata Motors, short Maruti Suzuki: Singal

Sandeep Singal, Co-Head Institution Equities, Emkay advice traders to go on Tata Motors and short Maruti Suzuki.

Singal told CNBC-TV18, “In auto space, we prefer two wheelers over four wheelers, so Bajaj and Hero Honda over four wheeler space. But within four wheelers space our pick is Tata Motors as compared to Maruti Suzuki and may be one can play long Tata Motors and short Maruti kind of a position because impeding Diesel price and Petrol Price hike would dampen the sentiments on Maruti which is having most of the sales from domestic front, but Tata Motors could remain intact or could see upside because quite a bit of its sales comes from the global markets particularly China and Europe. So, that could be a play.
He further added, “Metal sector, given the lack of production definitely the volume figures would not be that great, but mostly I would say market have already aligned to this kind of an expectation and stock has already corrected so much. So, may be less than expected volume numbers would not really affect stock too much. But overall I would say the metal sector- ferrous, non-ferrous sector is placed neutral to underweight. They are not expected to give anything above expected kind of a result. So, we are not really gung-ho on this sector from a stock return point of view.”