Tushar Pradhan of HSBC Global AM said the economy is likely to pick up, so probably it is a good way to stay invested in the market.
Frontline indices have been fresh highs even as the broader market stays pressured.
In an interview with CNBC-TV18, Tushar Pradhan of HSBC Global AM said largecaps have been driven by earnings. Midcaps, which witnessed strong growth in both earnings and stock prices last year, will have to post continued earnings growth in order to rally further.
Overall, he said the economy is likely to pick up, so probably it is a good way to stay invested in the market.
FMCG
Pradhan said FMCG stocks generally trade at a premium to the market. "It always move much stronger, become expensive but that is not a concern as results continue to be robust."
Banks
Corporate banks may still be avoidable as there is not clear solutions to non-performing assets yet, he said.
Things are little better in private sector lenders but that does not mean clouds are clear, he added.