When markets are on a bull run, a couple sectors best indicate the strength of the rally. These are the sectors where data is reliable, and which have a strong correlation with the health of the economy. Along with cement and real estate, the auto sector is probably a lead indicator of what is happening on the ground. However, news from the sector has been mixed in the last few months. While the move toward EVs continues apace, sales of traditional ICE products were weaker in the festive months. This led to a sharp correction in some stocks. But December sales have been better than expected. So, is the much talked-about issue of inventory pile-up over? And has all the bad news been priced in?
