The Auto sector is perhaps one of the worst hit during the global economic downturn and the Maruti results were not encouraging with the company accepting that sales growth numbers of 20% would be impossible to achieve in the near future. The outlook for the sector remains negative and the sector will witness a growth of 5%-7% at the best. Keeping in line with the previous recommendation on Investor Street, we are still Bearish on the sector with the reassessment for the ranking due in April.SELL call on Tata Motors due to a 34% fall yoy in sales to Rs 47,586 million on 31.7% yoy decline of volumes, mainly in the CV segment. The company incurred a huge net loss of Rs 2,633 million driven by a steep decline at operating levels and a forex loss of Rs 2265 million as compared to a net profit of Rs 4,991 million in Q3 FY08.
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