Stock markets: Experts recommend these sectors to outperform in short term
- Experts say sectors like pharma, banking and finance are expected to outperform stock market in the upcoming week
Amid rising Coronavirus cases, stock market experts are busy advising investors and traders to maintain stock and sector specific trade. They are of the opinion that even when COVID-19 pandemic is on the rise (both in India and in overseas), sectors like pharma, banking and finance are expected to outperform stock market in the upcoming week. They advised investors to look at COVID-19 cases as the major trigger for the market next week.
Speaking on the major trigger that will drive Dalal Street in upcoming week; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Major trigger for the stock market is inside India and that trigger is number of COVID-19 cases getting reported in upcoming week." He said that nay further rise in COVID-19 cases will definitely fuel pharma sector as we witnessed last year but the way Government of India (GoI) is pressing for vaccination, this time there might not be that kind of panic visible in the market that we saw in March to May last year.
Standing in sync with Avinash Gorakshkar's views; Sumeet Bagadia, Executive Director at Choice Broking said, "Pharma sector is expected to give breakout in the coming week and stocks like Cipla, Cadila and Sun Pharma should be a good buy for both investors and traders in the market next week." Bagadia expected 8-10 per cent rise in these pharma stocks in next fifteen days to one week time-horizon.
On other sectors that may also beat Dalal street performance in upcoming weeks Bagadia said that banking & finance is another sector that will give better return in coming weeks. He said that Bank Nifty is in oversold condition and any upside move can be a major trigger for banking and financial stocks' rally.
Asked about the major banking and financial stocks that one can think of buying this week Sumeet Bagadia of Choice Broking said, "In banking sector SBI, Bank of Baroda, Kotak Mahindra Bank and Axis Bank shares can be a good buy for both investors and traders while in the financial sector L&T Finance and HDFC Ltd. shares are looking poised for upside move."
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