Should you invest in markets at all-time high levels?

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Retail investors have become a force to reckon with, matching every dollar sold by institutional investors ever since the pandemic broke out last year. Markets have also been supported by improving macros, better Q1 earnings and the heightened IPO activity.

Avinnash Gorakshakar  of Profitmart Securities spoke to Money9 and shared the outlook for markets going forward and the strategies investors should adopt in the current scenario.

“Markets are not going to stop here. The frenzy in the primary market space is indicative of the investors’ appetite. Retail and HNI money is coming in despite FII outflows. Macro factors are increasingly getting supportive including GST collections and the vaccination drive. Even if there are some corrections along the way, but markets should look to clock in further new highs,” he said

He also said that companies which operate in manufacturing, agriculture space, internet companies are going to be doing well. Broking, AMC and insurance is the other segment. Financialization as a theme will do well going forward.

On the other hand, he believes that luxury sectors, expensive real estate segment, those are not necessity will be the ones immediately under pressure. Airlines, tourism, hotels are rising due to unlock but I believe there will be some subdued move over next 2-3 quarters.

“Unless you have a large kitty, retail investors won’t be really benefitted in the primary space. Investors must understand that quality companies will not be available at dirt cheap prices. One can start off with the SIP route over the next five year time frame”, he said while discussing the apt strategies for investors in the current markets.