Bullish on realty and home improvement theme in current markets: Rahul Shah, MOFSL

Markets recovered sharply from intra-day lows and the Sensex reached 58,533 for the first time on Tuesday while the Nifty hit 17,436 during the afternoon trade. HDFC, HDFC Bank, Reliance Industries, Bharti Airtel, ITC and Asian Paints were the top movers for Nifty50 while selling pressure in stocks such as Infosys, Kotak Mahindra Bank, Axis Bank and TCS kept the upside capped. Rahul Shah of Motilal Oswal Financial Services spoke to Money9 to share insights on the strategy investors should adopt at record high markets. "Markets are being driven by the rally in large-caps which are playing catch up also the positive commentary by India Inc on Q1. Financials have been underperformers so far with concerns on asset quality. Large private bankers have seen a deterioration there however going forward, one may need to look at Q2 and how it pans out for the financials and until then the consolidation will continue", he said Among sectors, he believes that real estate and home improvement themes will attract more investors interest going forward.

Stock Recommendations

HDFC | Buy | Target: 3200 | Duration: 6 months Dabur | Buy | Target: 750 | Duration: 6 months