In the past few days a lot of cyclical names have all started to warm-up and banks and capital goods and cement have been at the forefront of that, says Udayan Mukherjee.
Speaking to CNBC-TV18, Mukherjee says that the trade is beginning to catch on now. However, this is not the time to chunk out high quality from the portfolio just yet, cautions Mukherjee.
The Indian equity indices- Nifty and Sensex- are both trading at record highs today.
But if nothing goes wrong, globally or domestically, then the stocks that are likely to do well in 2015 and beyond that will be the not-so-expensive capital goods, midcaps and some banks, he highlights.
“Now is it the time to jump in and therefore junk the stocks where valuations have expanded over the last many months- ITs and pharmas. Just take it little easy on a day when the market this new highs, it is tempting to say let’s get the boring out of the portfolio. They have done their bit and now let us pass the baton on to something which has not moved but in doing that one just ignores the fact that there could be turbulence on the way ahead for whatever reason, global or maybe elections.”
Nothing is done till its done, warns Mukherjee who adds that in turbulent times, it is the quality stocks that will perform again.
Those who have invested in IT, pharma and private banks should book 50 percent profits today and spread out the rest 50 percent in cyclical names and diversify your portfolio, advises Mukherjee.
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