"It would require extreme courage to buy into this market from a valuation point of view," said Nilesh Shah, managing director of Kotak Mahindra AMC. However, Shah advised that investors with risk-appetite should start buying into this market.
"Small and midcaps is a place that one should invest in but buying should be staggered manner anywhere between 6-18 months and not on lump-sum basis," he said in an interview with CNBC-TV18.
"Today when FPIs, retail and HNIs are sellers in the market, the domestic institutional investors led by mutual funds are buying on a selective basis," said Shah. “Our buying is entirely driven by SIP flows."
Taking about the economy, he said low oil prices and good monsoons so far haven’t had a positive impact on lead indicators like auto sales, core industry growth or consumer durable sales.
“July-August data are indicating towards continuing slowdown and all hopes are on the festive season,” he said, adding that heavy lifting is required to ensure that economy goes back into that 6-7 per cent-plus growth rate.