Auto Sector Strategy – Realigning Model Portfolio As New Headwinds Emerge: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Our auto model portfolio has delivered a moderate outperformance of 160 basis points since its inception in December 2020 in an operating environment challenged by relentless headwinds.

With more headwinds on the anvil, we realign our model portfolio to navigate the near-term headwinds.

The auto sector (NSE auto index) has underperformed Nifty sharply by ~13% in CY21 year-to-date, with a broad-based underperformance across stocks.

This is attributable to several factors impacting the auto sector.

The NSE auto index has delivered just ~6.5% returns in CY21 year-to-date, against the Nifty 50’s ~19.5% returns.

Further analysis of this underperformance reveals broad-based underperformance across stocks, with only a handful of stocks outperforming.

Click on the attachment to read the full report:

Motilal Oswal Auto Model Portfolio.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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