Moneycontrol
Last Updated : Jan 18, 2018 04:46 PM IST | Source: CNBC-TV18

Time to rebalance portfolio, move out of midcap/smallcaps into quality stocks: Expert

This could be an excellent time to make money in frontline quality stocks, which are available at a PE multiple of 12 to 20, said SP Tulsian.

CNBC TV18 @moneycontrolcom

The rally on Dalal-Street continued but with hiccups in the second half on Thursday. The Sensex ended 170-points in the green at 35,260, while the Nifty closed a quarter percent higher at 10,817. However, Nifty Midcaps tumbled two percent to record biggest fall in four months.

SP Tulsian of sptulsian.com is of the view that 2018 would be a classic case of taking call on pure fundamentals. This could be an excellent time to make money in frontline quality stocks, which are available at a PE multiple of 12 to 20, while some of the midcap/smallcap stocks are ruling at PE multiple of 30 to 50.

It is time to rebalance the portfolio and keep booking profits in midcap and smallcaps and one could look to shift to frontline stocks, advices Tulsian. Merely playing on index will not make money, so one should look at shifting into quality stocks from midcaps and smallcaps with a horizon of 3-12 months for 2018.

Ashwani Gujral of ashwanigujral.com is of the belief that plunges and declining days in the market are buying opportunities because if there is no global follow through on the downside then chances are market could again see an upside.

Kamlesh Kotak, HOR, AMSEC is of the view that the market has run up too much too fast and the ensuing earnings season may not be good for the entire gamut of stocks.

Structurally, Kotak says the more worrying thing for the market given the valuations at which it is trading is the visibility of earnings for next year and if that is not building up then there may be a problem of plenty for many of the overheated stocks, particularly in midcaps.

Volatility in the market is likely to continue and the view on earnings could be divergent for Q3 and Q4, says Kotak.

Other market experts R Sreesankar Prabhudas Lilladher, Mitessh Thakkar mitesshthakkar.com and Prakash Diwan also shared their view on specific stocks and sectors like banks, ITC etc.,
First Published on Jan 18, 2018 04:40 pm
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