We believe that in some of the narrow sector themes there has been some euphoric built-up based on past returns. Investors need to be careful with the risks that they are taking to generate additional returns,” Patil of Aditya Birla AMC said.
Ashwini Shami, executive vice president & portfolio manager at OmniScience Capital also believes that there is euphoria in pockets like railways, defence, infrastructure, and power. However, there is also no doubt about the growth opportunities these areas offer, he added.