MFI sector should continue to do well in June quarter: Kunj Bansal

economictimes.indiatimes.com:

«What is happening is in the last 10-15 days or so, if we look at suddenly the monsoon all over the country has come out in a reasonably good quantity and distribution,» says Kunj Bansal, Investment-illiteracy.com.While the index and the market overall looking in great shape, wondering how much more headroom does auto as a sector has? What do you think what is most undervalued and overvalued, if I can call it that within the auto pack?Yes, so multiple things. One, of course, it is very difficult always to arrive at answers to these questions. But still, one if one has to try one has to look at the various facts, various numbers.

So let me start top down first by the market itself. So almost every day we are hitting life high, which is a good thing. Today, we are roughly 19,700 on Nifty.

If we go back to March 23, we were around 16,800 or so. So from there on almost 3000 point rally in percentage term, it's a 16-17% sharp rise in the market in a short period of about three and a half months. Let us just put it in the other context.

If we go back about 20-21 months ago in October 2021, we had Nifty at around 18,400 then and today we have Nifty at 19,700. So from there in 20-21 months, it is only a 6-7% rise in the market that has happened. So these are the two ways to look at it.

Now within that coming sectorally, you talked about auto, let me just put in perspective some numbers. If we look at last six months numbers, calendar year 23 or year till date, let us say six and a half months. So we have seen that auto has been one of the outperforming sectors with about 24-25% return.