Investors to keep an eye on IIP data, Monthly Inflation and Monetary Policy - Aditya Birla Money

Market, this week, has shown good recovery with rise in Nifty, Midcap and Smallcap index by 4.0%, 2.6% and 2.2% respectively. The rally was mainly led by clarification by finance ministry on TRC (which has soothed nerves of foreign investors coming through the Mauritius route), slight ease of concern in Italy (although overhang continues to remain) and was aided by short covering. Investors lapped up quality blue chip stocks with oil and gas, banking, real estate and capital goods sectors being the frontrunners. Few sectors which lagged were FMCG, Power, Auto and Cement.

For next week, investors will keep an eye on IIP data, monthly inflation data and anticipate the monetary policy action to be taken by RBI on 19th Mar13. We recommend investors to accumulate quality blue chip stocks with medium to long term perspective, as India continues to remain an attractive equity investment destination. We recommend investors to focus on rate-sensitive sectors like banking, auto etc. and on quality stocks in reform led sectors like oil and gas sector and media. At the same time, investors should look at an opportune time to accumulate stocks in defensive sectors like FMCG, IT and Pharma sectors.

Source : Equity Bulls

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