With the massive electoral mandate given to the NDA, expectations are running high about market friendly policies that will pave the way to capital expenditure and job growth. How much the new government will be able to achieve under difficult economic circumstances remains to be seen.
But hope seems eternal among market players. Sector rotation has started already. Money is being pulled out from defensive sectors like FMCG, IT, Pharma and being deployed in infrastructure, capital goods and cyclicals in a bid to make short-term profits.
Stocks of pipes and tubes companies had a rough time during the past few years as infrastructure spending came to a halt. Closing charts of two of them show that good times are ahead. Do your due diligence before jumping on to the bandwagon.
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