Nifty created history on Friday (May 28) when it hit an intra-day life-time high of 15,455, said Zee Business Managing Editor Anil Singhvi. As the domestic equity benchmark made its all-time high, the Market Guru invited Nilesh shah, MD, Kotak AMC, to help investors understand this market going forward.  

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Nilesh Shah said investors should not expect similar returns from mid-cap and small cap stocks as they did in the last one year.  

"The kind of return and bounce back we have seen in mid cap and small cap shares are little difficult to repeat. When we see such rally in these shares, there is phase of consolidation and correction that follows. One should invest in quality mid cap and small cap stocks and keep their expectations reasonable," said Kotak AMC Managing Director.  

Talking about life-time high and strength in the market and triggers going forward in one year, Nilesh Shah said the most important trigger would be to contain spread of Covid 19. "If we can implement the vaccination drive as expected by us, economic activity will go back to pre-covid ways in normal manner in 4 to 5 months. Second thing is that if India succeeds in inviting companies moving out of China post Covid 19 situation, it will also the economy and the market too."

Commodity market has seen a great momentum of late, but commodity is cyclical in which as the prices go up, people start looking for alternate products, said Shah, while talking about the bull run in this sector and further opportunity. 
 

"Commodity cycle still has a momentum, but one should keep in mind this natural tendency. Also, those companies related to metal stocks which had acquired new units by taking loan will see their debt going downwards and their equity value coming up. These high-debt leveraged company are getting double profit and their momentum companied to normal commodity player is likely to last longer," concluded Shah.