IANS | 20 Nov, 2023
Retail investor exuberance is pushing up the broader market.
Investors should not be blinded by the recency bias and chase small caps
running away without fundamental support, says V.K. Vijayakumar, Chief
Investment Strategist at Geojit Financial Services.
Inspite of
recent underperformance, safety is now in large caps. Since FIIs turned
buyers in the cash market on two days recently, they are unlikely to
sell big and may again buy on favourable developments, he said.
There
is momentum in large-cap IT stocks. The expectation that US will not
tip into a sharp recession has improved the prospects for IT. Autos,
telecom, capital goods and construction-related segments are likely to
remain resilient. Banking stocks bouncing back is only a matter of time,
he said.
"The ongoing rally in the mother market US triggered by
declining bond yields makes the market construct slightly favourable for
the continuation of the rally in India," he added.
BSE Sensex is trading down 25 points at 65,769 points on Monday.
M&M is top loser down more than 2 per cent.
