Nilesh Shah, the Managing Director of Kotak Mahindra AMC, warns that having high return expectations similar to the 24 percent surge of the Nifty 50 in Samvat 2080 could lead to disappointment in Samvat 2081.
He explains that the recent selling by foreign portfolio investors (FPIs), which exceeded Rs 1 lakh crore in October, is due to concerns about valuations.
However, Shah remains optimistic that FPIs will continue to invest as long as India maintains strong earnings growth and improved governance.
He believes that there will be a recovery in the second half of the fiscal year after earnings fell short of expectations in Q2FY25.
Shah suggests that if there is monetary policy easing in calendar year 2025, it could help bridge the earnings gap.
Despite ongoing market worries, he emphasizes that investors often find opportunities by navigating through these concerns.