New Delhi, Oct. 12 -- The recent correction in automobile stocks has opened an opportunity for investors to selectively assess vehicle manufacturers, as healthy festive demand and resilient earnings provide support despite concerns over second-half growth and rising raw material costs, according to a report by Equirus Securities.

"Recent correction in OEM stocks make a case for an active look," the brokerage said, adding that concerns over growth prospects in the second half of FY27 and raw material cost inflation were "now largely priced in".

However, the report cautioned that persistent foreign investor selling remains a key risk for the sector. "Continued outflows from Indian equities could weigh on OEM valuations in the near term re...