With the uncertainty owing to the general elections gone, the focus of the market will shift to the steps taken by the new government to support economic growth, says Managing Director of Kotak Mahindra Asset Management Nilesh Shah.
"It is always difficult to predict the short-term trend of the market. Although the Index currently is at high level, the broad index is not necessarily at the same level. Over the next couple of months, we could see a broad-based rally where the index might remain where it is but the other stocks may outperform the index,” he pointed out.
Regarding NBFCs, Shah underscored the need for taking company-specific steps to ensure that the sector is able to refinance their debt. The liquidity crisis of NBFCs should not lead to solvency crisis and problems with a few firms should not cause a domino effect that hurts other sectors of the economy.
The RBI's monitory policy review statement will come on June 6. Shah said he would be looking at the apex bank's commentary on inflation and growth trajectory.