Shares of battery manufacturers Amara Raja Energy & Mobility Ltd and Exide Industries Ltd touched their record high levels in Tuesday's trading session. Amara Raja's stock soared 20 per cent to hit an all-time high of Rs 1,655.20. It was last seen trading 17.63 per cent higher at Rs 1,622.50. At this price, the multibagger scrip has gained over 110 per cent in the last six months.
Similarly, Exide jumped 8.13 per cent to hit a record high of Rs 620. The scrip was last trading 3.32 per cent up at Rs 592.45. Considering this price, the multibagger counter has moved nearly 100 per cent higher in past six months.
Analysts largely suggested that both the stocks looked 'expensive' after a sharp run-up in the recent past.
The prices are looking expensive after the kind of rally that both these counters have seen over the last four to six months, Gaurav Dua, SVP, Head of Capital Market Strategy at Sharekhan by BNP Paribas, told Business Today TV.
"Investors who are already holding the stocks can continue with their positions. Fresh investments are not advised at these levels," the market expert further stated.
Another market analyst also shared similar views on both the counters. "Technical parameters are overstretched in many of the auto ancillary companies such as Amara Raja and Exide. All these counters are in the overbought zone but there has been a continuation in the uptrend. One should keep on riding the momentum with a trailing stop loss so that profits can be taken out once there is any dip," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Investors should refrain from fresh accumulations at these high elevated zones. Those holding can keep trailing the stop losses at higher levels," Krishan added.
Meanwhile, Indian equity benchmarks were trading higher today, led by gains in banks and financials. Broader markets (small- and mid-cap shares) were mixed.
11 out of the 16 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty Bank and Nifty Financial Services were outperforming the NSE platform by rising as much as 0.81 per cent and 0.62 per cent, respectively. However, Nifty FMCG and Nifty Metal were down 0.22 per cent and 0.30 per cent, each.
The overall market breadth was positive as 2,161 shares were advancing while 1,502 were declining on BSE.
Foreign portfolio investors (FPIs) sold Indian shares worth Rs 653.97 crore on a net basis during the previous session and domestic institutional investors (DIIs) offloaded shares worth Rs 820.47 crore.