Investors of broader markets should be careful: AK Prabhakar

Domestic equity market benchmarks BSE Sensex and Nifty 50 were trading at record high levels on Tuesday. BSE Sensex claimed 54,772, while the Nifty 50 index hit 16,359 as record high. Bharti Airtel share price was top index gainer, up 3.5 per cent. Bank Nifty was up 0.58%at 36,238.80. Nifty Financial Services index gained 0.7%. AK Prabhakar of IDBI Capital spoke to Money9 on which segments will outperform in markets going forward.

“In the past few trading sessions the index has been performing and clocking in record levels but beneath the surface, stocks have been correcting, so the markets are getting distributed. Investors of broader markets should be careful if they are invested in non-quality. These stocks have run up sharply due to euphoria”, he said.

Among the key segments which will outperform, he believes life insurance sector, IT and telecom space needs to be looked at.

“Like HDFC Life, SBI Life, ICICI Pru from the life insurance space and the telecom space with all the news flow. Bharti Airtel and RIL are preferred stock”, he added.

On the new IPOs and listing however from the basket of  — Chemplast Sanmar and Aptus Value Housing Finance, Nuvoco and CarTrade, he believes investors should be very selective and careful.