Prefer quality over momentum in current markets: Vinit Bolinjkar

Sensex, Nifty climbed over 0.12% after a muted start on Wednesday. The Sensex was at 52,927.97, up 66.79 points, or 0.13%, while Nifty was at 15,832.95, up 14.70 points, or 0.09% . IT, auto were top drags.

Vinit Bolinjkar of Ventura Securities spoke to Money9 on the factors impacting markets and said, “The rally in broader markets has stretched far out. The valuation differential between large and midcaps has narrowed so I believe the rotation will start to happen now and money will flow back into the large caps. We might see a pause or consolidation with volatility rising going forward. I advise investors to stay cautious and prefer quality over momentum.”

On the sectors which could be on investors’ radar, he said one must look to stay with defensives like FMCG and consumer stapes at this point.

Talking about the buzz in the primary market space, Bolinjkar said, “IPO seasons of the past have taught investors a lesson that only quality will get accepted. Investors must only look to invest in quality IPOs amid the rush. we like Clean Science & Technology IPO for the long term. Even though it comes at a premium, there is a whole amount of money which can be made over 1-2 years”.