Hold Maruti Suzuki: Phani Sekhar

Phani Sekhar, Fund Manager--PMS at Karvy Stock Broking told CNBC-TV18, "Valuations can get well ahead of fundamentals at times. However, considering the fact that we are at the beginning of an upcycle which hopefully will last for three to four years, I think such premium valuations can sustain for some time for the fundamentals to catch up. At this point in time there is no case, valuations are expensive however since it is expected that fundamentals will improve for the entire auto sector, at least to match up to what the valuations are suggesting, plus remember that it has been a huge play on Yen depreciation, that has also worked in its favour. So, when you combine all these, investors can still hold on to Maruti Suzuki."

"It is always a good idea to be just a bit watchful because Maruti also has been a big beneficiary of disproportionate allocation within the auto sector since the two wheelers have not been doing well. So, the moment two wheelers will start doing well, there might be some profit taking place in Maruti," he said.