For example, one can see some selling pressure in ITC, which has until a few months ago hit a 52 week high of Rs 380 on the bourses. The stock is now trading at a much lower level of Rs 318 on the bourses. Similarly, the shares of Hindustan Unilever has fallen from Rs 725 to the current price of Rs 584.
Pharma stocks also have seen a mild correction in their share prices. Lupin, Sun Pharma and Cipla are among the stocks that have rallied in the last few trading sessions.
On the other hand some stocks from the metal, infrastructure and PSU banking space are rallying once again, and there are hints of investors shifting focus from the FMCG and pharma space to the old names from infrastructure, metal and banking space.
In fact, PSU banks have rallied sharply in the last few trading sessions on the hopes that non performing assets at these banks may have peaked. In fact, it all began with the spectacular results of Bank of India, which reported a sharp improvement in its asset quality. This led to hopes that asset quality concerns for PSU banks may soon come to an end.
The other set of stocks that are rallying are the metal stocks. Hopes that Chinese growth would once again gather momentum has pushed these stocks higher.
Stocks like Tata Steel, National Mineral Development Corporation and other stocks from the sector have once again seen buying interest.
Analysts are of the opinion that stocks from sectors like pharma and FMCG remained extremely expensive at the current levels, which may lead to selling pressure in these stocks.
At the same time stocks from the PSU banking space offer attractive dividend yields at the current levels and might continue to see buying interest.