The recent surge to all-time highs isn t just a pre-election rally, according to Sunil Subramaniam, MD and CEO of Sundaram Mutual. He views it as a sustainable trend and suggests that large-cap IT stocks will provide portfolio stability in case of a rebound in the sector. He doesn t expect private banks to take the leadership just yet.
Investors, while optimistic, are not unaware of the potential risks facing the market. Yet, the market s overall sentiment has been relatively buoyant. Moneycontrol Analyst Call Tracker for March highlighted a strong preference for banking stocks, with IT stocks facing scepticism. The emphasis is on selective investment strategies.
MCX stock has already seen aggressive short covering followed by long addition immediately after the breakout, the pace of up move from here on can be gradual with some bouts of intermediate profit booking