Looking at the consensus earnings for the fiscal year 2020 and 2021, the markets are unlikely to sustain the current rally, said Rahul Arora, CEO of Nirmal Bang Institutional Equities. The recent fervour in the markets was triggered by rising foreign inflows following a series of events, including US Federal Reserve monetary policy and the announcement of elections dated, he noted.

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“It has caught most institutional investors by surprise. I do not think anyone expected us going into the election at 12,000 on the Nifty; it was probably a post poll outcome. I am a little worried given where I see consensus earnings on FY20-21 that this purely on fundamentals may not sustain,” Arora said.

Speaking about SBI Life and ICICI Prudential, Arora said, “We have initiated on the entire sector. In addition to SBI Life and ICICI Prudential, we have also covered Max and HDFC Life. However, SBI Life and ICICI Prudential are our preferred picks in the space.”

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