The Nifty50 seems to have steadied after seeing a 25 percent rally in the past six months. In the last five sessions, it has fallen a percent and is trading flattish on Tuesday, at the time of publishing. Nepean Capital would advise investors to book profits in big gainers, Gautam Trivedi, co-founder and managing partner, told CNBC-TV18 but added that he doesn't expect a major correction.

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“I would urge people to start booking some profits where stocks have done exceptionally well, but all of the ingredients that have caused the Nifty rose as much as 140 percent from the lows of March of last year, are still in place whether easy access to market; thanks to 4G, liquidity, eKYC has significantly changed the way and the speed at which you can open an online account, zero commission brokerages, low-interest rates; all these are in place and I do not see that changing,” he said.

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“However, I do not see the market rally, necessarily, having a major correction yet,” he added.

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According to him, profits from the stock market will find their way into real estate.

"(This) typically happens during every bull run, but having said that the prices of the absolute real estate companies have gone up a fair bit. Longer-term of course, they are still the best place to play the real estate sector,” said Trivedi.

On Asian Paints, he said, “Promoters have done a great job in handing over the reins to the professional management, but there are some headwinds with respect to not just Asian Paints but the paints’ industry. One, two big groups (JSW, Grasim) entering the space, for good reasons because the margins, the business itself is lucrative for them to do so. Second, the price of raw material; every move up in US dollar has a negative impact on the paint industry. So valuations are stretched and for the time being, I would stay away from the sector.”

For the entire interview, watch the video

(Edited by : Abhishek Jha)

First Published:Oct 26, 2021 1:06 PM IST