New Delhi, April 9 (IANS) An important feature of the recent rally in India is the leadership of fundamentally strong sectors like capital goods, automobiles, banking, and metals, as highlighted by V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. The robustness of the Indian economy, sustained capital flows into mutual funds, and domestic investor enthusiasm support the rally. However, Smallcap valuations are deemed elevated and unjustified.
The ongoing bull market’s standout feature is its ability to achieve record highs, witnessed in both the US and Indian markets. The distinct bullish signal of ‘higher highs and higher lows’ defines this year’s Indian market pattern. Consequently, the buy on dips strategy has consistently proven successful for investors.
A notable trend in yesterday’s market movement was the outperformance of large caps, expected to continue. Large-cap banking stocks offer valuation comfort in a richly valued market, further bolstered by anticipated strong Q4 results. Sectors like capital goods, autos, cement, and hospitality are poised to maintain resilience.
The BSE Sensex currently trades at 75,055 points, up 313 points, with Infosys and Tata Steel showing over 2% gains. This positive momentum reinforces market optimism and points towards continued growth potential.
