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Base effect, investments in infra prove to be good for auto sector: Rupesh Patel, Tata Asset Management

In a chat with ET Now, Rupesh Patel, Fund Manager, Tata Asset Management Ltd, highlights reasons behind good auto numbers this quarter.

Edited excerpts:

What did you make of the auto numbers for the month of March and what is the run rate you expect from that sector?

If you look at the commercial vehicles sector, the numbers have been good.

To some extent, the base effect is playing its role in showcasing the numbers but apart from it, the investments in infrastructure sector have brought positive news for auto, especially the commercial vehicle segment. We expect that in future, these numbers should continue to remain healthy.

Do you think that the record GST collections mark an improvement in the overall macros?

The GST numbers for April stood at a record Rs 1 lakh crore. While these were positive numbers, but nonetheless, it is too early to read it as a trend because in March, generally the economic activities pick up.

GST collection numbers should pick up now as the system has stabilised. The implementation of the e-way bill will also lead to improvement in compliance and better collection of indirect taxes will follow.

Original Article

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