Banks with better credit culture and better provisioning will outperform, says Kotak Mahindra AMC

Speaking about auto stocks, he said, “Here onwards, in auto, one will have to be selective. In most auto companies' cases, today, demand is higher than the supply and they are all constrained by the vendor network. So the most important things will be – one, is the company having the right supply chain management? Will they be able to meet the demand? Second, it is fair to assume that rural and semi-urban India is likely to be better than urban India at least in the foreseeable future. Third, within the auto sector, two-wheeler and four-wheeler entry-level cars will be easier to buy, financing will also be easily available. So within the auto segment, entry-level cars, two-wheeler, semi-urban, rural India products for which financing is easily available – these will be the characteristics to pick up auto companies.”