"It's time to be a bit more cautious now," said Damani.
Ramesh Damani, a member of BSE and Atul Suri, CEO-PMS at Marathon Trends, shared their views on Indian stocks after the 50-share Nifty hit an all-time high of 11,761 in morning trade.
"I have always said consistently that what we saw in December and January was a strong correction rather than a break in the bull market; it was a break in the bull market and not the end of the bull market and I truly believe that the bull market that began in 2013 is still intact, we just went through a painful process but correction seems to have become over and now we are resuming the uptrend," Damani told CNBC-TV18.
Talking about the portfolio, he said, "I think a lot of the rail PSUs that the Government of India is listing are very cheap valuations, their order books are very strong, visibility is good, dividend yields are good and the PEs are fairly low. I have been bullish on PSUs before and as a basket, those PSU stocks look attractive to me."
On the market front, Damani said: "It's time to be a bit more cautious now. The market had 8 percent rally from the lows. So it’s a fairly sharp rally that has taken place. Therefore, I would be cautious, but long-term the fundamentals remain to what we want."
Atul Suri of Marathon Trends said that the broader market has to do a bit of a catch-up.
"We have had a very concentrated move on some of the major heavyweight components of the Nifty and that has propelled the market. A lot of participants, a lot of retail, high net worth individuals (HNIs) people have been looking and waiting and watching because this market has not been very broad-based and I think that we will get into the phase where we will have a catch-up. So I feel that index per se may not give you that kind of vertical move that we have seen in the last month and a half but what we will see is a bit of a catch up in the broader space in the market and I think that is very important to keep the rally most sustainable."Source: CNBC-TV18