Dipan Mehta, Member at BSE & NSE told CNBC-TV18, "The risk factor is that at least this earning season we are entering with a lot of hope and expectations, prices have rallied into this earning releases. Lot of the IT, pharma companies has done exceedingly well over the past three months. The appreciation in these stocks started around the last earning season and they have moved up significantly across the board by anywhere from 20 percent to 70 percent as we have seen. That in itself is a bit of a risk factor because when the earnings do come out, the sell of news kind of syndrome does take over and you could see minor selling taking place at that point of time."
"From long-term investor viewpoint, these declines could be opportunities to again add exposure to these stocks because till the election results are known the biggest thing as to be the export oriented companies; they are benefiting from improvement in global trends, benefiting from weak rupee and as against that we are seeing very dismal set of industrial production numbers which means that at the ground level domestically things are not improving as much as we would like it to even on the capex side the cycle is still yet to pickup, so the only horse which investors would like to ride at this point of time is the export oriented sectors and over there-there will be a churn within the sector if CMC did badly this quarter then some other stocks maybe underperformer of the previous quarter may turnaround. So, that kind of a churn within the pharma and the IT industry, but one would say that there are enough opportunities within these sectors for investors to deploy their money in a profitable manner and get returns which are inline with what the index will give or even slightly higher."
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