Little chance of Reliance moving up significantly. Here’s why

The bet on the new economy sectors for Reliance is underperforming at this stage, says Sandip Sabharwal, analyst, asksandipsabharwal.com.

On financials

The financials underperformed for some time vis-à-vis the overall market led by a lot of commodities, capital goods, infra as well as IT stocks. Now some sort of catch-up trade seems to be happening in the financials.

And to that, the RBI’s action on trying to cap the yields on the 10-year bonds is also giving some confidence to market participants that yields will not move up despite inflationary pressures in the way commodity prices have moved and the price hikes that all manufacturing companies are announcing from January 1.