Investors should shift focus back to largecaps: Likhita Chepa

After opening at record highs on Friday, equity benchmarks slipped into the red as banks and IT stocks offset gains in pharma and metals.

Weak global cues also weighed on sentiment. Broader markets, midcap and smallcap indices traded mixed. At 1:27 pm, the Sensex was at 53,122.57, down 36.28 points or 0.07%, while the Nifty was at 15,917.55, down 6.65 points or 0.04%.

Likhita Chepa from CapitalVia Global research spoke to Money9 and said, “We were hoping for the 16,000 level to be achieved today on the back of strong earnings in IT but the markets lacked strength and financials did not participate much and therefore the markets have seen profit booking, however one does not need to worry and the rally will resume soon”

On the sectors where one should keep their focus in the current markets, she believes there is a sector rotation taking place and now defensives are taking the lead. She said that she prefers to includes, IT, Pharma, FMCG and Realty.

“While the broader markets have outperformed so far, I believe now is the time to shift focus back to largecaps”, said Chepa.

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