Dinshaw Irani, CIO of Helios India, believes that PSU companies will suffer at the hand of the private sector because they are not as well managed as compared to a private sector company.

He said, "The rally that one saw in PSU companies was because of the build-up of expectations that privatisation is around the corner and there would be a lot of value unlocking happening. In the case of BPCL the stock has run up and there is still no privatisation happening here. So there is a lot of hope built in there but we believe that PSU's will suffer at the hand of the private sector because they are not as well managed as compared to a private sector company."

Irani said it will be tough for auto companies to pass on the raw material price hikes. He expects margins of auto companies to suffer, going ahead.

"There has been roughly 40 percent average hike in raw materials for auto companies over the last 3-6 months. To absorb that, they need roughly around 7-8 percent hike in prices. They have already taken a hike of 1-2 percent, which is still not enough for them to absorb the raw material prices. So, the margins will suffer going forward and it will be a tough call passing on raw material prices across. We are fairly negative on autos."

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(Edited by : Bivekananda Biswas)