Stock market: Nilesh Shah said there were earlier worries over oil prices because of the Middle Eastern conflict but Suddenly, Shah said, such concerns have eased, as the US is relaxing sanctions on Venezuela
“Assuming that you are a medium to long-term investor, you enter in a disciplined manner on a staggered basis, a larger midcap fund is a good allocation that you can make in your portfolio. And it should give you stability of largecaps and also potential kick-up from midcaps with a reasonable control on the volatility overall.”
“As an investor, there is opportunity in premiumisation, mass market and super luxury segments. All three options are available in India and as an investor we will have to keep our eyes open. As of today, post Covid consumption distribution, premium markets or premium products have done well but it is just a question of time before the mass market products also start doing well.”
Nilesh Shah, MD of Kotak AMC, compares the RBI governor to legendary cricketer Kapil Dev, saying that the RBI is playing multiple targets just like Kapil Dev could bat, bowl, field, and captain. Shah believes that the RBI s policies are reassuring to the market and that they will manage any challenges that come their way. However, he notes that the equity market has other concerns, such as the upcoming result season, uneven recovery, energy prices, and the impact of the 2024 elections.
"Generally, we have seen ahead of election cycles, there is more money in the pockets of consumers, especially at the bottom end of the pyramid, as government spends money. Now, this should benefit consumer staple or consumer goods company. There are events from the US Fed pivot to monsoon to election and there will certainly be change in the baton and sector rotation."