Nifty, Sensex rise nearly 1% amid positive global cues, volatility to continue; what should investors do-

Nifty, Sensex rise nearly 1% amid positive global cues, volatility to continue; what should investors do?

Indian benchmark indices were holding on to their gains on Friday, following a relief rally in the US markets overnight and gains in Asian stocks. The BSE Sensex rose 614 points or 0.9% to touch intraday high of 56,255, while the NSE Nifty 50 climbed 165 points to 16,793. Sectorally, Nifty IT soared over 2 per cent following a strong rally in US tech stocks overnight. Nifty Bank, PSBs, and Pharma were other notable gainers. “Short term investors who are under invested in equities can top up their equity holdings to ride this upmove,” said Deepak Jasani, Head of Retail Research, HDFC Securities.Where are markets headed?

“Currently, the market is eyeing the central bank’s guidance on the interest rate trajectory. Both the RBI and FED meeting is scheduled in June and we have to wait and watch to see how central banks influence the path of interest rates trajectory to maintain growth and inflation dynamics. Keeping these developments in view, we expect the market performance to remain range-bound in the near term, and a clear trend is likely to emerge only if volatility stays at lower levels for a longer time,” according to Neeraj Chadawar, Head – Quantitative Equity Research, Axis Securities.

What should investors do?

Investors should focus on asset allocation and use this volatility to build long-term positions in quality companies, where the earnings visibility is high,” said Neeraj Chadawar, Head – Quantitative Equity Research, Axis Securities

Hold positions, wait for dips to buy: Investors should hold positions for 17,000 levels. And if levels are attained, investors can book some profits and wait for corrections for making a new position at lower levels, said Mohit Nigam.

Stay invested in quality stocks: Santosh Meena, Head of Research, Swastika Investmart, said, “There are still some uncertainties about global markets but there are some pockets that may continue to outperform. Investors are advised to stay invested in quality stocks while the current rally is an opportunity to exit stocks that have fundamental concerns. We are bullish on corporate facing banks, capital goods, infra, and housing sector.”

Deploy cash in valued stocks: Choppy movement in the broader market is expected for next couple of weeks, one can selectively deploy the cash in valued stocks, said Akhilesh Jat, Category Manager – Equity Research.

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