Market off record high: Analysts pick these top 10 stocks for 16-53% returns

After a stellar run for almost 2 weeks, the benchmark indices saw selling pressure on November 25 as investors and traders booked profit. Experts say they are not worried about this fall as generally it makes bulls stronger to march further.

The benchmark indices corrected 1.5 percent each on November 25 after hitting a fresh record high in morning trade with the Nifty crossing the 13,100-levels intraday.

The consolidation was on expected lines after a rally of more than 70 percent each on Nifty and Sensex from March lows. The indices had rallied over 10 percent in the previous 14 sessions.

Foreign money is clearly the key driver of the rally, along with improving macroeconomic data, better-than-expected September quarter earnings, and hopes that a COVID-19 vaccine is around the corner.

"Declining dollar index is pushing FII flows and India is a major recipient of this huge capital flows. In November, till date, FIIs have invested a record Rs 55,553 crore in India. This frenzied buying is unprecedented. Even though lots of justifications - economic, political & policy-related- can be given for this massive global rally, the fact is that this rally is predominantly liquidity-driven. Mid-caps are likely to rise further," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services told Moneycontrol.

"Valuations are rich and in many cases approaching bubble territory," he said.

Hence, experts expect some more correction and volatility in coming days, but they feel the correction is not going to change earnings expectations and economic growth parameters unless any big risk arises again.

Given the expected growth in several sectors, especially after September quarter earnings and improving economic growth, brokerages have initiated coverage on several stocks in last one month.