Why switching over to laggards may prove rewarding in stock market

FMCG, Pharma and Energy are sectors that have delivered lower returns than benchmark indices in the past year

The bull-run is still going strong despite nervous moves from FPIs as rising US inflation and strong employment data could lead the Fed to tighten sooner. The Nifty and Sensex hit all-time highs. The one-year performance is astounding.

Since the crash in March 2020 when it bottomed out at near 7,500, the Nifty is up 128 per cent. It’s up 50 per cent in the last 12 months. The technical takeaway from this move is simple: Trend is up, and momentum is strong.

However, we often see profit-booking and a shift in trading perspectives, when a market hits new highs.