Bet on underperformers like FMCG, IT, and financials or stay with momentum plays? Abhay Agarwal answers
Abhay Agarwal, MD & CIO, Piper Serica, says that in markets like this, it is very difficult to analyse momentum because segments of the market are in a frothy zone – stocks that have gone up 10 times. All stocks in sectors like railways, defence, and power are at 5 times, 10 times. So, it is difficult to stay with the momentum. It is a very risky bet. Agarwal says: “We like to explore sectors that have not done well and are not on investors’ radar for the time being.”
What spooked the markets on Friday? Is this just par for the course and are we headed for that 25,000-26,000 level soon?
Abhay Agarwal: I have not read too much about this weakness over the last couple of days, including today. This will continue till the Budget announcement. It is a big event. We are very close to it. So, traders are probably lightweighting their long positions and booking profits.
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Offering CollegeCourseWebsiteIIM LucknowChief Operations Officer ProgrammeVisitIIM LucknowChief Executive Officer ProgrammeVisitIndian School of BusinessISB Chief Technology OfficerVisitA lot of money has been made over the last six months, especially after the poll results came out on June 4. The market has seen a one-way rally. So, I am not surprised that people are booking profits and taking some money off the table. The general view is to wait for the Budget and take sectoral positions accordingly.
At the same time, there has been a global weakness in commodity prices. They have been firming up
