PVs best placed in auto sector; Maruti is favoured pick in the listed space

The auto sector has been the worst performer among sectoral indices over the last year, shedding 34.5 per cent, while the Sensex and the Nifty were down marginally

July was the ninth consecutive month of falling sales, with most automobile companies reporting a slide in domestic volumes upwards of 15 per cent. The lower sales in July were on account of the economic slowdown, higher vehicle prices and inventory correction by automakers. The auto sector has been the worst performer among sectoral indices (see table) over the last year, shedding 34.5 per cent, while the Sensex and the Nifty were down marginally. Despite record low volumes in July and muted June-quarter numbers, auto stocks rebounded over the last two sessions with the BSE Auto gaining over 2.3 per