The markets have taken a plunge this morning on the back of extremely weak global markets. The fall in Indian markets is in line with the fall in the emerging, Asian and US markets. The overall market breath is negative.
Further, all the BSE sectoral indices are in the negative terrain down over 4 per cent. The worst hit are the; BSE metal index which is down 7 per cent, and FMCG index which is down nearly 6.5 per cent.
So in the wake of such a bloodbath across the markets, which are the sectors you could burn your fingers with? Experts give the answers.
Sumit Rohra of Antique Stock Broking: Keep away from banking
While, I would not recommend selling anything at this point, one sector which I feel will not outperform the markets is banking. This sector will remain under pressure due to the interest rates. Profits of banks will be hit due to rising interest rates.
So banking stocks would not outperform, and this is one sector that I would choose to keep away from.
Vibhav Kapoor of IL&FS Investsmart: I would sell into commodities at any rally, rather than buying
Metals is the most difficult sector at this point of time because the volatility in commodities is extremely high and while commodity prices have come off from the top of 10-15 per cent, stock prices have come down in some cases by 40-50 per cent.
It is a difficult call to make at this point of time. If we assume that the global and US economy is going to slow down a bit, then probably one might have seen the best of the commodity cycle atleast in this particular phase. Therefore I would rather sell into any rally in the commodity stocks at this point of time, rather than buying.
Rahul Rege of SSKI & Sharekhan: Negative on banking in the long-term
We are adopting a stock specific approach in the markets. But one sector that we would keep away from is banking. We are negative on banking in the long-term.