Even the most logical minds can make mistakes when overwhelmed by noise created by a certain narrative. Lately, there has been a narrative circulating that Foreign Portfolio Investors (FPI) are selling off due to polls. This narrative tends to affect sectors and stocks with significant gains that rely on government policies, such as the railways sector. Despite recent re-rating of the railways sector, the long-term potential remains promising. It’s important not to be swayed by such narratives and instead hedge investments in stocks with strong fundamentals and long-term growth potential.
In times when certain stocks have seen massive gains, it’s natural to question whether to sell and secure profits. Sectors like railways, which have already experienced re-rating and significant gains, often face doubts about stock prices being inflated. It’s crucial to stay focused on stocks that have shown fundamental improvements and have a promising future, rather than being influenced by short-term narratives.
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