Domestic funds who have been consistent buyers are booking profits

NEW DELHI: Market has turned highly volatile with profit booking triggered by high valuations and even DIIs who have been consistent buyers are booking profits, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Buying on dips also is happening simultaneously. These twin moves of profit booking and dip buying will keep the market highly volatile in the near-term. An important trend in the market is the renewed buying in pharmaceuticals. Further buying can be expected in this segment, he said.

Long-term investors can buy the fairly-valued largecap private banking stocks which have the potential to outperform the Nifty this year, he said.

The Supreme Court judgement on the Adani-Hindenberg issue on Wednesday will have a sentimental impact on the Adani stocks in particular and the overall market in general, he added.

BSE Sensex is down 319 points at 71,572 points on Wednesday. JSW Steel is top loser down more than 3 per cent.

IT stocks are down with Wipro, Tech Mahindra, Infosys down more than 2 per cent. TCS is also down 2 per cent.