The Indian market has witnessed strong rally year-to-date. Most experts feel that the current rally is liquidity driven.
In an interview to CNBC-TV18, Sandeep Bhatia, Kotak Institutional Equities says, liquidity is clearly pouring into the market. "The key driver behind these rallies is essentially fund flow. If you think that liquidity will continue to pour in, the market can trade up higher," he adds.
He would be taking profits in the market from 5% up from here. "I would take money off in midcap stocks, wherever there have been rallies," he asserts.
While defensives are no longer cheap, he thinks they would still be a part of anyone’s portfolio right now.
He expects private banks and FMCG to continue to attract flows. " HUL , ITC remain preferred picks despite valuations," he adds.
Reliance Industries , Bhatia says, is fully priced. "The stock will be in a trading range. We don’t see any earnings triggers for the business," he adds.
According to him, Tata Motors ' valuations are cheap as compared to Indian peers. " Mahindra and Mahindra and Tata Motors are our top two picks in the auto sector," he adds.
In the IT space, he prefers TCS , and HCL Tech .
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Good post, i too agree that the mic-cap stocks are a good place to book profits especially for equities segment.
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