Consolidation in IT stocks after sharp run up cannot be ruled out: Kranthi Bathini, Wealthmills

Indian markets are witnessing volatile trade amid monthly F&O expiry.  Metals index fell 1%, while buying was seen in the FMCG, power, oil & gas and capital goods stocks. Kranthi Bathini of Wealthmills Securities spoke to Money9 on the strategy investors should adopt amid the high volatility.

“Markets are trading in consolidation phase which is a healthy sign after a one way sharp run up. Even first time investors which have so far seen a one way rally will get their early lessons of consolidation”, he said.

He also believes that metals despite the current volatility do present a good opportunity too new investors to enter the stocks in metals space.

“Investors who are sitting on mountain of profits however may look to book some profits,” he added.

Among sectors, he is bullish on IT sector looking at the fundamentals and growth opportunities. Some consolidation is warranted after the stupendous rally so far, he believes.

Speaking about why the auto sector is underperforming he said that the pressure points of input costs and shortage of semi conductors.

“One can still look to add Maruti at these dips as it is the largest car company and will give a fair returns to investors”, he said.