It looks difficult to spot a value buy at the time when the benchmark equity indices BSE Sensex and NSE Nifty are hovering at their record high levels. However, Kranthi Bathini of Wealth Mills Securities believe that sectors like power, infrastructure, construction and real estate sectors can offer some buying opportunity in this market.
He advised investors to look for real estate companies with quality management and geographies they are in. Bathini sees a turnaround in demand in real estate. He is also bullish on select midcap IT companies.
Sharing his thoughts on the domestic equity market, he advised investors to stay cautious at present levels as midcap and smallcap indices have rallied more than 150% since the lows of March 2020.
“One should diversify the portfolio and stay extremely cautious at this point of time. Investors should allocate some amount to large cap and keep 20-30% cash,” said Bathini.
Commenting on the IPO market, he added that selling interest is higher in the recently listed stocks. “One should book profit in case of fabulous return on the listing,” he said.
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