We recommend that investors stay invested in the market and maintain good liquidity (10 per cent) to take advantage of any market declines in a phased manner and build positions in high-quality companies with high earnings visibility over an investment horizon of 12-18 months.
Aamar Deo Singh, Senior Vice President of Research, Angel One
Markets continue to hit record highs on the back of strong domestic inflows, positive global cues, and hopes of a US Fed rate cut.
The current rally spreads out across multitaps and sectors. Investors are advised to adopt a cautious approach and invest in tranches rather than go all out at current levels.
Sectors to focus on from a long-term perspective include defence, power, infrastructure, FMCG, automobiles, and pharma, to name a few.
Antu Eapan Thomas, Senior Research Analyst, Geojit Financial Services
The broad market valuations are currently high, but sectors with strong growth prospects, such as manufacturing, electronics, IT, renewables, healthcare, e-commerce, infra, agriculture, and consumption, remain attractive.
Some areas are expensive, so it is crucial to focus on stock fundamentals, avoid overvalued stocks, and adopt an accumulation strategy.
Targeting specific stocks and sectors is advisable.
To achieve better returns and ensure safety, consider rotating out of recent outperformers and shifting to value sectors, as overall market conditions are expected to improve in the coming years.
Further, the improvements in rural areas, agriculture, and government expenditure are anticipated to benefit sectors connected to the domestic economy, such as staples, FMCG, fertilizers, telecom, cement, pharma, and consumer services.
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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
Reference Link: https://www.livemint.com/market/stock-market-news/rbi-mpc-meeting-what-does-indian-stock-market-expect-on-august-8-11722957112475.html