As most of the traders and FII takes goes into the new year holidays the volumes is the financial markets have come down. Indian equity market outperformed its Asian peers .
As Chinese equity markets keeps drifting down can India provide the much needed alternative for Risk seekers ?
However we have to take the recent rise in the context of low volumes and holidays . We will need to reconfirm come January if this recent out performance can be sustained .
For today keep an eye on Lupin and Dr Reddy .
The recent rally in metals stocks like Tata Steel , Vedana , Hindalco should be used to move out of existing positions . With no good news from China , metals and commodities will continue to unperformed the broader market in 2016 .
One stock that we feel will outperform the market in the next few years is Tata Chemicals . Long term investors may add this company to their portfolio in small lots . While there is no immediate trigger for the company we will see the positive outcome of recent changes trickling in the next 2 to 3 years.