It is the sector which has led the rally which the market has witnessed in the last eight months and rightly so. If one looks at the history, the rallies which are led by the transportation and auto sector are more durable as sales of LCV and certain other auto segments is an indication of the economic situation on the ground. But given the fact too much liquidity is floating in the markets, some of the stocks have seen a sharp run with valuations moving upward sharply. That is probably the reason why analysts, while being bullish, are more cautious. So at a time when the desire to own stocks and invest is very high, it would be worthwhile to be slightly more watchful.
