Manishi Raychaudhuri positive on four-wheeler stocks

Manishi Raychaudhuri, Asia-Pacific Strategist at BNP Paribas told CNBC-TV18, "The emission related concern and the near investigations that are happening in the United States, that has its whole ripple effect across the supply chain. And this is something we are seeing across the world and the Indian component suppliers are not going to be immune to that. So, that is a company specific or supply chain specific issue that we are seeing.""Apart from that, within autos we are also seeing that same demand compression. Urban demand in India is now slightly better than rural demand. So, the beneficiaries of urban demand that is passenger cars, they are naturally doing relatively better and therefore our preference also lies with the four-wheelers. Now, within four-wheelers, there are some companies which are also correlated with China because they generate 25-30 percent of their demand from China and those companies, they have declined anywhere between 40-45 percent. So, some of those stocks which have declined so sharply, also look kind of tempting to us at this point of time.""So to summarise, we are more positive on the four-wheeler side and within the four-wheelers, not just the market leaders, but also those which have declined very sharply as a consequence of the Chinese concern. So, we will be both sticking with the defensives and be slightly opportunistic here," he said.