New Delhi, Sep 1 (IANS): The rally in the mid-and small-cap segment is turning unhealthy with the participation of many low-grade stocks. This trend is unlikely to last long, says V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"Headwinds stronger than tailwinds have pushed the Nifty down by 406 points in August, Some headwinds like weakening monsoon and sluggish global growth are likely to weigh on markets. And now there is another headwind coming from the Brent crude rising to $87, he said.
FPI flows in the cash market turned negative in August after strong positive flows in the previous three months. These headwinds will constrain a sustained recovery in markets, he added.
Long-term investors can utilise weakness in the market to buy high quality stocks in banking, capital goods and automobiles.
BSE Sensex is up 197 points at 65029 points on Friday morning. Metal stocks are the top gainers with Tata Steel up 3.7 per cent, JSW Steel up 2.2 per cent.
Powergrid, M&M, Tech Mahindra, Maruti, NTPC, Tata Motors, Indusind Bank are up over 1 per cent in trade on BSE.