Foreign funds are set on India, with their inflows into the country since Sep 19--the day US Fed cut interest rates--touching Rs 14,485.62 crore till Monday, Oct 1. On the other hand, domestic mutual funds have booked profits to the tune of Rs 4,071.58 crore till Monday with the market at such high levels.
What should retail investors do in this run-up which has seen the Sensex gain nearly 3,000 points and is set to cross another milestone--18,000.
"Retail investors should ride the wave till first signs of trouble are seen. It might come in the form of political uncertainty, RBI move or sub-prime crisis. Then... rush for exit," said Manish Sonthalia, vice president-equity strategy, Motilal Oswal Securities.
"The market is ignoring everything; which is a cause for concern. At current prices, market is running ahead of fundamentals. Chances of steep correction are likely," he said.
Hitesh Sheth, head of research at Prabhudas Lilladher, said, "retail investors are cautious. They are not so confident on the bullishness of the market. We are advising booking profits in sharply moving stocks and buy those which have kept low."
Ambareesh Baliga, vice president, Karvy Stock Broking, said, "It's not the time to go short but book profits. Get out of the market and don't look at opportunity lost." Summing it up, an analyst from a local brokerage said, "retail investors should adopt a strategy of booking profits on every rise in the stocks which have appreciated sharply in the past few days. Long-term players can remain invested as medium-term to long-term out look remains positive."
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