Auto Stocks

I read your story about the growth prospects in electrical vehicles and allied sectors. Thank you for your insightful research. I would like to ask you that with the recent rally in the auto sector is it a good idea to remain invested in the auto sector or book profits at current levels?

-Bhavana J 

Editor Responds : We are delighted to understand that you liked our story on EV and auto sector. Indeed, the trend in stocks that stand to gain from scrappage policy and EV promotions is looking positive for the moment and in all likelihood will remain positive for foreseeable future. If your investment time horizon is more than three years, it makes sense to hold on to your investments in auto sector stocks that stand to benefit from the shift in the trend. However, if your investment horizon is closer to one-year, partial booking of profits will serve you better. Hope we have answered your query. Do come back to us in case you need further clarification.