Rahul Singh, CIO-equities at Tata Mutual Fund, said on Thursday that the company will wait for 3-6 months to take a call on automobile stocks.

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“Once the entire wheel of the liquidity or economy starts moving, which could take 3-6 months and we have some of the inventory issues behind of the transition to BS-VI, that’s when we would start looking at autos more aggressively," explained Singh, in an interview with CNBC-TV18.

We have seen a wave of earnings cut after Q1 and there is some more to go, said Singh.

“The comfort is coming from valuations and with the valuations being close to 10-year average and with the bond yields where they are, Indian bond yields as well as the global bond yields, I think there is comfort on the valuations more than comfort on earnings and that’s how the market is also taking it,” he added.

He further said that currently, there is "a tussle between earnings and valuations".

Talking about NBFCs, he said, “The business model is getting challenged especially in some of the smaller NBFCs, non-cooperate backed.”

Speaking about real estate, he said, “We are not staying away completely but we are not waiting for the stimulus as well."