Outperformance of mid- and small-cap indices unlikely to continue: Analyst
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New Delhi (Uttam Hindu News): The stellar performance of mid- and small-cap indices in Samvat 2079 is unlikely to continue in 2080 as well. V.K., chief investment strategist at Geojit Financial Services. Vijaykumar has said this.
Investing in large-cap is safer. Leading financial companies have the potential to outperform. Automobile, construction-related sectors, digital platform companies, select pharma, capital goods and telecom companies are in a strong position, he said.
The good start of Samvat 2080 with a rise of 100 points in Nifty is a sign of bullishness in the market. The market is battling concerns arising from two wars and a slowing global economy. This happens in bull markets. He said that investment strategy should be based on this basic understanding of market behavior.
An important feature of the market is that it is rising despite FPI selling. This means that even if FPIs continue selling, the market will remain strong even if the selling is in small volumes. He said, of course, heavy selling by FPIs will have a negative impact on the market.
On Monday, BSE Sensex fell 397 points to 64,861 points. Bajaj Finance, ICICI Bank, Asian Paints are down more than 1 percent.
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