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Caught off-guard on slowdown, FIIs, MFs cut stake in 34 auto stocks

Fund managers say festive period will be critical, analysts cite NBFC liquidity crunch for dismal state of affairs

Representative image
Representative image

The slowdown in auto sector has caught both foreign and domestic fund managers off-guard. According to shareholding disclosures, mutual funds (MFs) and foreign institutional investors (FIIs) cut stake in 34 auto and auto ancillary companies in June quarter. "The extent of slowdown has surprised everyone. In fact, auto ancillaries were expected to see some revival in capex, but that will not happen due to the sudden drop in demand. With the festive period coming, the next few months would be critical to gauge the pervasiveness of the current slowdown," said Navneet Munot, ...