Auto Sector Strategy - Realigning Model Portfolio As New Headwinds Emerge: Motilal Oswal
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Motilal Oswal Report
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.
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