Ambareesh Baliga

Vice-president, Karvy Broking

We expect sentiments to remain bullish on the automobile counter.

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How­ever, the base effect will surely work as a dampener.

We don’t expect similar growth numbers in sales in the coming few months. And investors will not be accepting any lower growth numbers. We feel the sector’s growth may lower a bit to 10 per cent from 15 per cent at present. Fundamental aspects, such as the rise in raw material cost, will be reflected only from September quarter results.

While we expect the rise in raw material cost to eat into margins, we don’t feel a marginal rise in automobile prices will impact sales.

Even a good monsoon may not help drive motorcycle sales as oil prices are on a roll.

However, there may be some improvement in the demand for heavy commercial vehicles and medium commercial vehicles as demand is picking up in this pace since October last year.