Sensex sheds 1,300 points after crossing the 73,000 mark; is it time to be cautious? Here's what top experts say
is it time for investors to turn cautious? Here's what experts say. Pranav Haridasan, MD and CEO at Axis Securities, noted that the IT sector has led the Nifty rally this month because of decent results backed by cheaper valuations. However, the recent upswing warrants a certain degree of caution as, many times, such sharp rallies do not sustain.
Thus, he believes that the near-term view will be cautious and suggests profit booking in areas of exuberance, especially in the small-cap space. Shauryam Gupta, CEO of Rupeezy, stated that the better-than-expected results from the IT majors have hinted that it may be the bottoming out of the poor performance by the IT stocks. "Nifty appears poised for another rally as Foreign Institutional Investors (FIIs) have turned net buyers in the cash market in the past two months.
Anticipated rate cuts this year are expected to further fuel Nifty's rally until the general election. However, intermittent volatility especially due to budget and occasional profit booking cannot be ruled out," stated Gupta. Meanwhile, Paras Matalia, Fund Manager, SAMCO Mutual Fund, believes that investors should ride this bull market till it lasts while keeping a very close eye on the markets for weaknesses.
"The setup for 2023 was very powerful as its previous calendar year witnessed only 10 new 52-week highs, while for 2024, its previous calendar year saw a staggering 29 new 52-week highs. Today markets opened at new lifetime highs marking the second new lifetime high in just 15 days of the calendar year 2024. This indicates that it is like a mature adult bull market rather than a young and raging one," he said.
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