Domestic equities witnessed a sharp rally in recent weeks mainly led by increased optimism about economic recovery with continuous fall in daily caseload in the second wave and improvement in recovery rates.
In our view, sectors considered to be major beneficiaries of capex revival are likely to be back in focus in coming weeks,” Modi added.
RBI will announce bi-monthly policy on 4 June.
“Such outperformance valuations in the broader market too is becoming a concern.