The S&P BSE Sensex index soared as much as 1,029.9 points or 1.8 percent to 59,957.3 in late afternoon deals and the broader NSE Nifty50 benchmark climbed as much as 297.3 points or 1.7 percent to 17,843.9 -- both all-time highs. In an interview with CNBC-TV18, Mihir Vora, director and CIO of Max Life Insurance and Harish Krishnan of Kotak AMC, discussed the market move at length.
Vora said, “Right now, the approach is more of the sector and stock rotation rather than taking any major asset allocation calls or going short on the market.”
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Meanwhile, Krishnan said that it is important that one tempers down expectations after the strong rally. “One needs to be a lot more selective in terms of the kind of businesses that one needs to partner with at this point of time,” he said.
On consumption, he said, “We do see revenge consumption coming back as India normalises. There has been a significant reduction in spending out, especially by the top 10-15 percent of households in areas like entertainment, sports, leisure, travel, education, a lot of high touch service points, which closed over the course of last 18 months odd.”
“Therefore, we do see a lot of these savings go back into consumption in various forms. So, consumer discretionary is one area, especially as the pace of vaccination improves and hopefully we do not get to see the scourge of the third wave, we think can potentially do well,” said Krishnan.
For the entire discussion, watch the video