Triveni Sangam of flows, sentiment and fundamentals will help sustain this market: Nilesh Shah

economictimes.indiatimes.com:

Nilesh Shah, MD, Kotak AMC, says “when smallcap starts trading at a premium to largecaps, when micro caps and mini caps start trading at the premium to largecaps, then there is a need to be a little bit cautious. Many of the micro caps and mini caps are today trading at valuation which looks excessive. They are trading there because floating stock is limited. There is a herd mentality in buying what moves and maybe distribution is already happening. There is no harm in being cautious when making money is easy.”

I used to think that we are the only two bulls in the town. But when I look around, everybody suddenly is the India bull. Everybody is excited with what is happening in the midcap space, the smallcap space and the SME space. Now should one turn bearish for the sake of turning bearish or stay with the market?
If you are a long-term investor, you can stay bullish. If you are a trader, especially in micro caps, mini caps and small caps, this is time to be cautious.

Unlock Leadership Excellence with a Range of CXO Courses

But whatever could go wrong has gone wrong and the way the economy flows, the global macro setup, earnings are moving, everything is quite favourable. So, why should one turn cautious or even bearish?
The market discounts all potential news and an expected turn of events in the future. Undoubtedly as you mentioned our growth story is looking good. But when smallcap starts trading at a premium to largecaps, when micro caps and mini caps start trading at the premium to largecaps, then there is a need to be a