Yogesh Radke - Head of Quantitative Research at Edelweiss Securities told CNBC-TV18, "We normally see that before the adjustments in the key indices we see a preemptive buying or selling in the counter which are getting included or excluded. Zee Entertainment has rallied up from Rs 280 to as high as like Rs 400. There was clearly preemptive buying. Reliance Capital saw some amount of selling before the readjustments were there."
"Historically we have seen that the counters which are getting included sees an interim topping at the adjustment day and the stocks which are getting excluded sees bottoming out at the exclusion day. So, I believe that Zee has rallied up a lot, it is trading at 32 times one year forward, valuations are slightly stretched and the stock may see a correction or cooling off from these levels. Today also the counter has corrected a bit," he said.
"In Reliance Capital, we saw good amount of correction before the exclusion. From Rs 470 it has bounced back and the counter is expected to start performing form these levels. Also in the winter session if insurance bill get passed, for sure these counters will have good upside from these levels."
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