Book profits in auto: Ambareesh Baliga, Karvy Stock Broking Ltd

Ambareesh Baliga, VP, Karvy Stock Broking Ltd, in a chat with ET Now talks about sectors to book profits.

Your seem to suggest that you should currently book profits in realty, auto and sugar as well.

Yes, in fact we have been suggesting people to book out as much as possible because when the fall comes - as and when it comes - it would be very steep and sharp. So it would be quite difficult for people to book out at that point of time unless you are a trader, who has kept stop losses. Otherwise, for an investor, it would be quite difficult to book out.

So the best time to book out is when the markets are moving up. It is close to the peak up, it could be another 200 points, 400 points move from here. So basically, you are leaving out the last 5-10% of the move but at least you are in fact taking home a good profit. So this is the time to start booking out as much as possible. So these are the sectors where we feel most of the stocks are overpriced extremely stretched. But that does not mean that they cannot move up more but still it is prudent to book out as much as possible.