Invest with caution; autos, pharma to do better: Investcorp

Before investing into the market one must be a bit cautious of the sheer money inflow that is propelling the market and getting distanced from the valuation matrix, advises Sandeep Shenoy of Pioneer Investcorp in an interview to CNBC-TV18.This month has seen the largest foreign institutional investor (FII) flows to the tune of USD 4 billion which is going into top-end of the spectrum. So there is likelihood of investors preempting and investing into these stocks, says Shenoy.According to him since it is impossible for investors not to partake in the rally that is taking place, one can look at spaces that are still seeing an upsurge like autos and some healthcare pharma names but beyond that it would become a preemptive call.

Moreover, according to Shenoy booking profits has never hurt anyone, so taking profits off the table in Banking, Financial services and Insurance (BFSI) space is advisable at the current juncture. There will be a chance to reenter at better levels in coming few weeks, he adds.

Talking of the sugar space, he says even though the Food Ministry has cleared the proposal of raw sugar export subsidy, it does not justify investing in sugar stocks. One does not stand to lose much even if the sector is avoided for a span of one-two years, says Shenoy.

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