shift to laggards such as power construction and metals as their aversion to risk recede on hopes that the marketfriendly reforms would cushion the decline in economic growth consumer goods and pharma shares were the favourites of investors till september 14 when the government announced the muchawaited diesel price increase and opened up retail and aviation to foreign direct investment because investors preferred companies with steady earnings despite their stock valuations turning pricey the tide has turned in the last two weeks the underperformers in the last year have delivered 1015 since midseptember while value of pharma and consumer goods shares has eroded analysts said indicators are pointing at the bias towards stocks in sectors such as capital goods metals power etc because of cheaper valuations though their earnings are unlikely to show any major recovery we note that this outperformance has been seen on the back of higher volumes and increased proportion of delivered volumes which indicate greater investor conviction in the current rally said broker clsas analysts mahesh nandurkar and bhavesh pravin shah our interaction with investors makes us believe that the ongoing rotation trade is unlikely to end in a hurry they said in a note to clients the portfolio reshuffling may help the stock markets sustain the ongoing euphoria which has accelerated foreign portfolio inflows into the countrys equities in the last couple of weeks and triggered a spate of sensex upgrades by top global investment banks including morgan stanley deutsche bank citi and the latest being macquarie in its most recent note macquarie raised its nifty target to 6600 a 15 premium to the indexs friday closing of 570330 on hopes the economy is bottom out following the recent government actions the optimistic report and strength in other asian markets aided the 1 rise in benchmark indices on friday we see rupee gaining a bit more before settling around those levels people would then want to wait and see if the policy implementations follow through whether further policy announcements are being made we may also see genuine buying interest imports loans coming in at those levels said arvind narayanan senior vp and head treasury and markets dbs bank the rupee has gained almost 5 against the dollar in the last two weeks more than its gains for the year to september 13 led by the strong fii inflows