Nilesh Shah of Envision Capital said there could be a similar situation like 2014 when Nifty hit 7,500 and then saw consolidation around 7,200-7,300 followed by a strong run
The market reaction on May 23 is reaffirmation of exit polls, said Nilesh Shah of Envision Capital in an interview to CNBC-TV18. However, he cautioned that now it will consolidate around current levels and some kind of profit booking will be seen.
The market turned flat with a positive bias after hitting all-time highs. Nifty climbed over 12,000 and the BSE Sensex crossed 40,000 intraday.
The Sensex gained 315.81 points at 39,426.02 and the Nifty rose 103.80 points to 11,841.70 at the time of publishing this copy.
Shah said there could be a similar situation like 2014 when Nifty hit 7,500 and then saw consolidation around 7,200-7,300 followed by a strong run.
Among sectors, he said consumer remains the favourite, which can be further broken into consumer staples and discretionary.
Financials continue to be a strong focus area including savings, insurance, distribution, etc., he added.
Nilesh Shah said direct proxy to the economy like engineering, materials have been underperforming for years and need to be watched closely.
One should keep powder dry and allocate some capital once measures are out, he added.
He said expectations are running high from the next government. "The priority area is to rationalise and bring down GST rates, physical infra, social infra, privatisation, etc."Bringing down the cost of capital or interest rate over the years could be the biggest contribution and can be done by the government, he added.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.