Market expert Anand Tandon on Thursday said that the automobile companies that witnessed a rally were "overstepping a bit" and that the sector was "anticipating too much in terms of a turnaround".

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"I would still be a little sceptical now that we are hitting levels which are near the all-time high," said Tandon in an interview with CNBC-TV18.

“The mood has definitely turned for the positive and therefore if you are looking at it from a slightly longer-term perspective, you have to see what it is that can drive it further from here. The only thing I can think of is earnings. To the extent that these companies have done reasonably well compared to what the expectations were, I think you should expect to see a bit of uptake and we have seen more than that," Tandon explained.

Speaking about IT space, he said, “Tata Consultancy Services (TCS) is the market leader and therefore the premium is probably justified... however if you are a private investor and not necessarily looking to benchmark yourself, there is no particular reason to be buying this as of now. Within IT, my own preference is for product companies."

Talking about BHEL, he said, “The biggest problem with BHEL is that at the bottom of the cycle. It resembles an NBFC... I am not bullish on BHEL or for that matter most government companies.”

Speaking about gas stocks, he said, “Most of the city gas companies have a long runway ahead of them. Clearly the government has decided that the gas will be made available and at a reasonable price which means that with these companies essentially having to just roll out the infrastructure, I think you will get both the utility like stability of earnings as well as growth coming through because of the fact that their network is continuing to increase. Most of the city gas companies are something that I would prefer.”