4 sectors Shibani Sircar Kurian is bullish on for near term

economictimes.indiatimes.com:

«So therefore this whole earnings growth trajectory for the segment led by volume growth, margins also expanding and valuation being in your favour is possibly something that is resulting in positivity where the entire auto-ancillary space is concerned,» says Shibani Sircar Kurian, Kotak AMC.Tyre stocks definitely are on the spotlight, Ceat is up as much as 18%, Apollo Tyres, JK Tyres you name any of these counters and they are flying away. The entire tailwind of the crude derivatives falling and the raw material prices being favourable is known, what do you think is happening suddenly in these counters that explains the move?When you look at the entire auto and auto ancillary pack one, as you correctly pointed out, that with input costs coming off there is that margin tailwind which is possibly known but as you start seeing that in terms of numbers that will start getting built in.

This is also a segment which in terms of valuation looks fairly reasonable so that is the second aspect. And the third aspect is if you look at overall growth especially in terms of replacement demand, the replacement demand which was missing for a long period of time should also aid volume growth going forward as well.

So therefore this whole earnings growth trajectory for the segment led by volume growth, margins also expanding and valuation being in your favour is possibly something that is resulting in positivity where the entire auto-ancillary space is concerned. So if you look at the entire auto-pack and the auto-ancillary segment, this is one space where we have been fairly positive and our positivity at this point in time at current valuations remains.Do you also believe that OMCs are in a sweet spot given that crude seems to have