The rally in mid- and small-caps has been sharper, with both indices surging 14 per cent and 9 per cent, respectively, during this period.
This sharp run has made analysts at Jefferies cautious. They suggest the current uptrend in equities may not last long.
The information technology sector (IT), believes Jefferies, remains at significant risk of sell-off if the Nifty was to correct.
As a tactical strategy, they have moved some of their allocation from the IT sector to staples, expecting the latter to be a defensive bet in the event of a market correction.
Also, they have replaced Godrej Properties (more volatile) with Macrotech Developers in their model portfolio.
Here are some key reasons why they have turned cautious on the current rally:
Bond yield, earnings yield gap: Expensive valuations, wrote Mahesh Nandurkar, managing director at Jefferies, in a report co-authored with Abhinav Sinha, is not a new phenomenon in Indian markets.
Diese Geschichte stammt aus der September 09, 2022-Ausgabe von Business Standard.
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Diese Geschichte stammt aus der September 09, 2022-Ausgabe von Business Standard.
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