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The Sensex rose over 720 points to its new high of 71,234.63, whereas the broader Nifty50 index advanced 214.4 points to its record high of 21,397.10.
“FMCG is one area which one needs to avoid. I do not think sustenance of 60-70 PEs for most of these stocks – I am talking about one-year forward PEs – is possible, given that even the rural markets are not firing and the growth rates are in low teens or even high single digits as such. So, that is one area that you need to avoid.”
Investing in rising or adequately-valued markets is not easy. But Anish Tawakley, Deputy CIO-Equity and Head of Research, says that domestic cyclicals should do well in a space where limited value pockets are available.