Market outlook: Discussing the long term outlook of the market, Ajay Srivastava, Managing Director, Dimensions Corporate Finance Services, said that yesterday’s all-time high has been the first such high in which the market breath has been very weak. Usually, whenever the market makes its high, there is a wide participation of shares in it. But only a few stocks contributed to yesterday’s rise. Due to this, a situation like Market at Peak and Portfolio Week was created.
This time the market has acted very selectively. There is also a maturity in the market. The good thing is that perhaps the right shares are getting more preference in the market. In future too, the market will create new highs and new players will come into them. Old tired stocks will be out of the race, while new energetic stocks will join the race. Lower returns are possible in stocks with high PE like 50-70. Returns in stocks with high PE will take longer. Review the stocks with high PE in your portfolio.
Ajay Srivastava said that do not expect too much return from the market, it is better if you get 15-18 percent return. The midcap IT sector has done well so far. There are many great companies in midcap IT. Midcap IT looks better from three year perspective. Infra companies have not given significant returns to investors. There is no problem in the infra sector. Look at the track record of the promoter and then invest. Defense sector is also good but keep the entry point below. Talking about capital market shares, Ajay Srivastava said that they are invested in all three big exchanges. The Exchange theme is great for the long term.
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