Stock market today: Sensex closed 63 points, or 0.09 per cent, higher at 71,721.18 while the Nifty 50 closed the day at 21,647.20, up 29 points, or 0.13 per cent.
The brokerage is ‘overweight’ on Private Banks, NBFCs (large diversified), Insurance, Cement, Real Estate, OMCs. It is ‘underweight’ on IT, FMCG, and Auto; and ‘neutral’ on Pharma, and Capital Goods.
Sandip Sabharwal says: In OMCs, the entire story will just go awry if just before elections, ther are forced to cut prices by Rs 5-10. Now that they have hit a 52-week high, all those investors who got in early and are making good profits, should be trimming positions rather than getting excited and getting in now.”
Going ahead, experts believe that the rally in midcaps and smallcaps in 2024 is not likely to be as strong as the one in 2023 due to high valuations. Furthermore, the analysts have started to prefer largecaps over midcaps and smallcaps in 2024 after last year s surge.
Anuj Bajpai, Founder & CEO, Liquide, believes that with general elections around the corner, the interim Budget may feature measures with mass appeal, such as tax reductions or subsidies. However, any major announcements in the interim Budget seem unlikely, he added.