Devang Mehta of Anand Rathi Financial Services told CNBC-TV18, "I think it has to be sort of a balanced portfolio, as we always say 50-60 percent would be allocated towards the so called defensives like IT, pharma and FMCG which in fact are not defensives and have taken the lead in this sort of a rally. Earnings growth would not be a big problem in these sectors; 40-50 percent of your portfolio has to be in banks, NBFCs, capital goods and even may be autos. So, if you construct this sort of a portfolio then there all chances that probably you outperform even the benchmark indices."
"I expect that the market has started its bull run again though it may not go in a hurry towards its all time high but probably the worst part of the correction seems to be over and I think there is a good valuation support around 8300-8400 from where the market would bounce back. So, given the pull of the sectors that I said probably this is a better place to play the rally rather than not just coming into the market. So, probably you should nibble into the stocks and among these sectors also we would like to have 30-40 percent exposure in the so called midcap space," he added.
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