NEW DELHI: PSU stocks are the top gainers in trade on Tuesday notching up gains of up to 11 per cent.
BSE CPSE index is the best performing index with several PSU stocks rallying. HOCL is up 11 per cent, Mazagaon Dock is up 8 per cent, MSTC is up 8 per cent, GRSE is up 7 per cent, NLC India is up 6 per cent, Bharat Dynamics is up 5 per cent, NMDC is up 4 per cent.
The global rally in December led by US market has lifted most markets significantly and India was fortunate to have the lift from the state election results too, says V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The 6 per cent rally in Nifty in December has heated up the market a bit and the bulls are likely to wait for the New Year for further action. High valuations continue to be a short-term concern, he said.
However, the global market construct continues to be favourable with the US inflation, bond yields and the dollar index trending down.
Buy on dips continue to be the best strategy in the present market context. Safety is in large-caps. Automobile sector is well placed for a cyclical upswing, he added.
BSE Sensex is up 318 points at 71425 points on Tuesday