Expect Nifty Bank to outperform Nifty in near term: Rahul Sharma, Equity99

Indian stock markets were in a cheerful mood on Friday as the Reserve Bank of India’s Monetary Policy Committee maintained its status quo on interest rate and stuck on the accommodative stance. Equity benchmarks Sensex and Nifty were trading with gains of almost 0.5% while the Nifty Bank was trading flat with volatile moves on either side. The small-cap index was seen outperforming. Rahul Sharma of Equity99 spoke to Money9 on what strategies to adopt in the current scenario of markets.

“The markets are still in an uptrend, however one needs to be very stock selective as valuations have run up. In terms of the index, investors can find better opportunities on Nifty Bank over Nifty. While am hopeful the Nifty will soon cross 18K, Nifty Bank should play catch up now and outperform”, he said.

Ahead of the earnings season, he believes the IT sector is likely to report positive earnings especially in select midcap IT firms. He likes TCS, Infosys in large-caps while prefers to keep Coforge or Mindtree in the midcaps space.

Stock Recommendations

Buy | Nelcast | SL : 80 | TGT : 110 | Duration : 6 months

Buy | KEC | SL : 435 | TGT : 525 | Duration : 6 months

Buy | Mrs. Bector | SL : 410 | TGT : 486 | Duration : 6 months