Indices have climbed comfortably and held 5600 on the Nifty yesterday. The Sensex too is taking a peekaboo at 20,000. However the markets as mentioned will no tbe in further hurry as implementation is unlikely in a hurry for whatever reform agenda policy announcements, ostensibly held up for a long time were finally approved on Friday.
New taargets are not easy to find when it comes to scrip and sector selection. Infra sector is very shallow in terms of blue chip picks and GMR debt overhang is not done taking down with it other candidates like RELINFRA for the same reason. Project based bidding took JPASSOCIAT to INR45k Crores and they have somehow managed to pay down the FCCB in quick time and are more or less ready for the rest of the debt repayments, which gives confidence to the sector.
Healthcare and Consumer Discretionary sectors are obviously not going any higher though select sector players have changed colors from defensive to good portfolio picks including those like Bharti because of the current undervaluation. Scrips like DRREDDY’s similarliy have been dumped and SUNPHARMA has not been able to go any further either. CIPLA is definitely out of fashion but Mid Caps may also be out of fashion for some time in this melee though I ould have opted for stronger mid caps.
Sector picks like ITC for example are now attractive picks at these levels and Reliance too could be a big accumulation during this wait and watch up mode for the markets IT scrips have definitely lost flavor this week but the Rupee may go down from 54 during the same wait and watch and so they will make a comeback. Mid Cap It should be a big No No during this period esp as INFY has rerated.