Fall in oil price, peace talks between the Reserve Bank of India and the government, the statement by US Fed's Jerome Powell and reducing NBFC crisis has spurred the November rally, said Nilesh Shah, MD, Kotak Mahindra AMC.
"All these factors risk factors suddenly turned in 360 degrees and benefited Indian equity markets," said Shah.
It is difficult to state whether the rally would sustain going forward but the probability is high, he added.
According to him, as long as oil prices remain soft and a good election results, markets will continue to be positive.
On the performance of largecap and midcaps, Shah said a lot of depends on how things shape up. "There are event risks associated with India. We have state election results on December 11 then general elections in May. While over long-term election results do not matter, but on the day of election results markets could be up or down 20 percent depending on the expectations of the market," Shah added.
So, one will have to follow a disciplined approach, if you maintain your discipline in terms of asset allocation, over next one year also equities will deliver good returns, he said.