With the indices sailing past previous life highs, some sections of the market certainly appear to be stiffly valued. But liquidity continues to take the markets higher. While domestic institutions and investors have remained bullish, foreign portfolio investors, who were consistent sellers before the elections, have turned buyers lately. Sector rotation also seems to be in play. One pocket of significant under-valuation – private banks – have led the post-election rally so far. With this pocket now taking a breather, IT stocks – another underperforming set- now seem to be taking the lead.
Pick of BL Portfolio
