EXIT The STOCKS
There is visible pain in telecom and power sectors. Tanay Loya and Neerja Agarwal explain why one should stay away from these sectors and also identify which stocks to avoid from these two sectors.
The Indian equity market trading close to record highs is keeping retail investors interested in the markets, despite dizzy valuations. There is no doubt that the Indian markets are trading at above average historical valuations.
Although the major benchmark indices gained nearly 2 per cent in the current series witnessing good amount of long additions, strong hands seem to be pessimistic and remained net sellers in the cash as well as derivatives market. The selling from the FPIS is partly negated due to strong buying momentum from the DIIS and retail investors.
In such a market environment, where valuations are stretched and individual stocks are showing lot of positive traction, there are very many stocks that are languishing and deserve no place in the portfolio in the current market scenario. These laggards need to be sold and the money so encashed can be optimally used to add on to stocks that are expected to do well.
After scanning various sectors, we find that telecom and power sectors are the two sectors having inherent problems and may struggle to grow. These two sectors may disappoint investors looking for growth.