Sensex hits 11K: Stocks, Sectors that can propel it further

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Sensex hits 11K: Stocks, Sectors that can propel it further

Moneycontrol finds out from experts stocks and sectors that could take the markets up further. Technology and power recieve a thumbs up from them.

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The Sensex has conquered the 11,000 level and the expert consensus seems to be that largecaps, especially from the technology, power and infrastructure field would lend support to the Sensex in moving further.

While FMCG majors ITC and HLL have proved to be the heroes of the Sensex's rally in the last 1000 points, experts feel that clearly it will be technology, power and power utilities that will drive the markets ahead.

Deven Choksey of KR Choksey Securities still has faith in the old favourites like Infosys , TCS , SBI and ONGC .

He says, "Moving ahead specific stocks like Infosys, TCS, SBI and ONGC will take the markets higher. The main reason being that these are fundamentally solid stories and can lend a lot of support to the Sensex."

He adds that, in the longer-term these stocks should be held by those who have them, however if they need to be bought one must wait for a correction.

While the markets have not been able to stage any large corrections in the recent past, experts believe that even a 500 point correction is fine to accumulate stocks.

Choksey says, "Even a 200-500 point correction leads to a shake-out in the markets and this is a time when people must accumulate stocks, however the stocks that I have mentioned can be bought at their current prices as well."

Sector wise Choksey places auto and auto ancilliary on the top of his list. He says, "If we look at sectors, auto, auto ancilliaries, project and infrastructure, power and power utilities, these will help the markets move ahead further. Among these specifically, Reliance Energy and Mukand look promising."

Upendra Kulkarni of Fortress Financial also feels that large caps from the technology space will lend further support to the Sensex, since even FII money will flow into these largecaps.

He says, "The technology and power sector look good ahead. Stocks like Wipro , Infosys, Hero Honda , Reliance Industries and Reliance Energy seem to be constant performers ahead. The markets are in a positive mood and one must exercise careful optimism since markets may not just keep moving up. But I feel that one must not hesitate in buying these stocks even at their current levels."

On the other hand, he says that stocks from the auto space like- Tata Motors and Maruti can be sold as they have had a phenomenal run already.

He feels that a correction must be definitely waited for, but since there is a lot of mutual fund money too waiting on the sidelines, corrections might not last.

On the broader markets Kulkarni says, "The markets will remain rangebound with an upward bias, and for the long-term a correction is always good. There is a huge demand in the markets from mutual funds and now even new money is coming in from the Gulf region. The Arabian money is moving into Indian markets, rather than US and Europe now, so markets will remain positive."

So as we see markets rising to newer levels, experts believe that all eyes must be set on accumulating large caps, which will turn out to be the winners.

By-Sakshi Sharma