EU Trade Deal: Indian Autos Resilient, Banks Offer Better Investment, Says Quantum Advisors

• Quantum Advisors' Nilesh Shetty believes market reaction to India-EU FTA on auto stocks is overdone.
• Indian automakers hold strong advantages in pricing, fuel efficiency, and after-sales service, especially in mass-market and rural segments.
• Major listed players like Mahindra & Mahindra and Tata Motors are unlikely to face significant disruption, despite potential impact on premium car makers.
• Shetty sees banks as a strong conviction due to attractive valuations and improving non-performing asset cycles, offering solid returns for patient investors.
• He also highlights long-term potential in IT services due to easier labor mobility and market access in Europe, while remaining cautious on textiles and downplaying carbon tax fears for metals.

Why It Matters: Indian autos are resilient to the EU FTA, while banks and IT services present more attractive investment opportunities.