Aviation stocks have had a sizzling run in the market recently, with both SpiceJet and Jet Airways being multibaggers over the past one year while newly-listed industry leader InterGlobe (IndiGo) also catching investors' fancy.
However, market expert SP Tulsian believes that the rally in the sector shares is overdone and said most they are approaching "the danger zone".
Aviation stocks today rose about 10 percent today, driven by a 10 percent cut announced in fuel prices, and the commodity rout has driven the rally so far. But Tulsian said investors' response was now driven by "exuberance".
"We must wait for Q3 numbers for aviation firms and then take a call about what profitability can be expected going forward," he said.
In the discussion, market expert Anand Tandon joined in, and the two discussed other stock and sector strategies.Please watch video for the full discussion.
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