Current market rally has been narrow. What should an investor do?

Over the past three months, the Nifty 50 index has rallied by around 5.5 per cent. But the rally has been very narrow which signals the last stages of a bull run.

Investors should maintain their asset allocation. If they have become overweight on equities, they should book profits and reduce exposure. They should also be mindful of valuations and avoid chasing momentum stocks trading at exorbitant valuations.