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Rely on auto sector

With many stocks hitting 52-week lows, this could be a good time to enter. But be prepared to hold for two-three years

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Devangshu Datta
Sluggish car sales through the festive season were followed by flat sales in November and declines in December. Various reasons for the downturn have been cited, ranging from poor rural demand, to high fuel prices, to high equated monthly instalments.

But there is consensus that the industry is facing “challenging” times. Note that the base effects are hard to adjust for, because automobile manufacturers faced extreme sales volatility in 2017 due to the GST launch.

The industry has a long value chain — probably the longest overall. It sources primary materials (metals, rubber), secondary materials (plastics), high-end electronics and computers. It provides
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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