Jun 27, 2017 02:57 PM IST | Source: CNBC-TV18

If you are overweight on equities, it is time to book profits: Kotak MF's Nilesh Shah

Nilesh Shah of Kotak Mahindra AMC believes that the long term bullish story of the market remains intact and investors, if underweight on equities, could increase investments.

In times when the market is going through a bit of consolidation, with spells of surge in between, Kotak Mahindra Asset Management Company (AMC) believes that this is the right time to build a portfolio from a long-term view.

The mutual fund house believes that this phase could last a little longer, but its long term bullish view on the market remains intact.

“Unlike in the past, liquidity in the market is coming in with a lot of hope and maturity… people will go into stock rotation-based performance,” Nilesh Shah, managing director of Kotak Mahindra AMC told CNBC-TV18 in an interview. This is one phase where the market could consolidate, but will break for the top later, he added.

Shah is also optimistic about investment behaviour by retail investor and believes that it will continue to grow ahead.

So, how should an investor approach the market going forward?

This is a stock pickers market, Shah said, adding that if you are a long term investor, who is underweight on equity, this is your chance to increase your investments. Having said that, he said, if you are overweight, it is time to book some profits.

Meanwhile, among sectors, Shah said that the focus continued to remain on private banks. The fund house continues to believe that they will gain market share from the public sector banks.

Additionally, he sees reasonable opportunity in rural space due to good monsoon and indirect benefit of farm loan waivers, among others. Along with them, Shah also believes the organised sector will be able to gain market share post the implementation of goods and services tax (GST).

On auto and auto ancillaries, he continues to remain bullish. Lack of public transport, EPF withdrawal norms to buy vehicles and Seventh Pay Commission implementation will benefit companies in this sector, he added.
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