Kotak Instl Equities not positive on automobile space

Sanjeev Prasad, Institutional Equities, Kotak Instl Equities is not positive on automobile space.

Prasad told CNBC-TV18, "We have reduced rating primarily on concerns of combination of high interest rates and high fuel prices. So clearly we will see low volume growth for the first 4-5 months of this fiscal year and then you will see in the second half assuming that you will start seeing interest rates peaking out and fuel prices after some hikes in stabilizing and then you start getting some momentum in this stock again. Having said that, I think valuations are quite okay in this sector but I would think till the time you see some volume growth coming back in a meaningful way I am not really sure the stock really going to perform significantly.