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market | IST

Nilesh Shah of Kotak Mahindra AMC says festive season demand will support market; prefers IT stocks

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In an interview with CNBC-TV18, Nilesh Shah, Managing Director at Kotak Mahindra Asset Management said that earnings have been above expectations so far. He added that US elections will have a short-term impact on the market but as long as the festival season continues to spurt demand and push recovery ahead, the market will be supportive.

In an interview with CNBC-TV18, Nilesh Shah, Managing Director at Kotak Mahindra Asset Management said that earnings have been above expectations so far. He added that US elections will have a short-term impact on the market but as long as the festival season continues to spurt demand and push recovery ahead, the market will be supportive.
On the domestic front, Shah expects IT stocks to sustain current valuations. Lack of normalcy returning to the economy will push investor allocation towards IT stocks which can sustain the valuation, he suggested.
“An interesting space which is emerging – is somewhere at the upper end of midcap IT companies where we are seeing margin expansion coming on the back of moving into newer areas and that may result into sustaining of valuations even in the upper end of IT companies along with large-cap IT companies,” Shah stated.
He also advised investors to play contra and accumulate strong capital goods companies.