Sectors like capital goods, auto lead Sensex to new high

Prameyanews English

Published By : Prameya News Bureau | April 09, 2024 IST

Sectors like capital goods, auto lead Sensex to new high

New Delhi, April 9: An important feature of the recent rally in India is that it is led by fundamentally strong sectors like capital goods, automobiles, banking and metals, says V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

The robustness of the Indian economy, the sustained capital flows into mutual funds and the enthusiasm of domestic investors can support the rally. However, valuations of the Smallcap segment are elevated and unjustified, he said.

The hallmark of a bull market is its ability to set new record highs. This has been happening in the US market and also in the Indian market, he said.

The pattern of ‘higher highs and higher lows’ is a distinct bullish signal and this has been the standout pattern in the Indian market this year. Consequently, the buy on dips strategy has consistently worked for investors, he said.

A healthy and desirable trend in the market movement yesterday (Monday) was the outperformance of the large caps. This trend is likely to continue. It is important to understand the fact that in this richly valued market, there is valuation comfort in large-cap banking stocks. More importantly, the Q4 results of the banking majors are likely to be very good. Sectors like capital goods, autos, cement and hospitality are likely to remain resilient, he added.

BSE Sensex is trading at 75,055 points, up by 313 points. Infosys and Tata Steel are up more than 2 per cent each.

(IANS)

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Sectors like capital goods, auto lead Sensex to new high
Sectors like capital goods, auto lead Sensex to new high
Sectors like capital goods, auto lead Sensex to new high
Sectors like capital goods, auto lead Sensex to new high
Sectors like capital goods, auto lead Sensex to new high
Sectors like capital goods, auto lead Sensex to new high
Sectors like capital goods, auto lead Sensex to new high

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