Market rally has just started, where to look for the contra bet? Sushant Bhansali answers

economictimes.indiatimes.com:

Sushant Bhansali, CEO, Ambit Asset Management, says: “We expect that from here on, while Nifty might go another 25-30% odd in the next two or three years, the small and midcaps will probably deliver much more than that given the size and the opportunity set which they bring to the table in terms of the Indian economy.” Bhansali further says that from a valuation perspective, banks, NBFCs and IT are really comfortable. But the growth momentum in the banks and NBFCs is much beyond IT as of today.What is your market perspective? Do you think that we are getting a bit toppish and that is why a bit of consolidation and sideways move or do you see more legs to the rally?The rally has just started. We had almost one and a half years of lull between September 21 and March 23.

And we have now seen a new rally starting from April this year. If you look at the previous rally, just looking at Nifty, pre-Covid, we were slightly short of 12,000. We peaked out to more than 18,000 by September 21.

From that perspective, the next top of the market should be Nifty at 26,000-27,000 in two or three years. So the rally has just started. Of course, the rally started with a big bang.

In just three months, Nifty moved from about 17,000 to 19,500 – almost 20% return. But the rally is here to stay. There will always be short-term volatility.

At times, the market will be consolidating in a range, which it has been for the last one and a half months. We are between 19,000 and 20,000 odd yet to peak out to 20,000. It has been there for almost one and a half months.