V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, has commented on the current state of the market, noting that it has become highly volatile due to profit booking triggered by high valuations. Even Domestic Institutional Investors (DIIs), who have been consistent buyers, are now booking profits. Vijayakumar suggests that this profit booking, along with simultaneous dip buying, will likely keep the market highly volatile in the near term.
One notable trend in the market is the renewed buying in the pharmaceutical sector, and Vijayakumar anticipates further buying in this segment. For long-term investors, he recommends considering fairly-valued large-cap private banking stocks, which have the potential to outperform the Nifty in the current year.
The Supreme Court's judgment on the Adani-Hindenberg issue, expected on Wednesday, is anticipated to have a sentimental impact on Adani stocks and potentially influence the overall market.
As of the latest update, the BSE Sensex is down 319 points at 71,572 points, with JSW Steel being the top loser, down more than 3 percent. IT stocks, including Wipro, Tech Mahindra, Infosys, and TCS, are also down more than 2 percent.
(With Agency Inputs)
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