“In the second half, there is a case for a consolidation because we are talking about wider participation in the market. Some sort of euphoria is building in and so some consolidation is likely to happen around these levels. That is my expectation because if that does not happen, then it becomes vulnerable to a bigger correction later. ”

“We are in a market which is now open to risk. Maybe a couple of months ago, we had relatively lesser downside but risk reward is relatively more balanced at this stage and all the risks potentially are not behind us. All the challenges that we had a couple of months ago have not gone out. Some of these can always come back on the table like inflation.”

“When one looks at thematic investing, it is very important to catch some of the themes early and as any theme grows and unfolds, the investors get the advantage of carrying on with the growth of that theme. That is the rationale behind getting into funds allowing EV and AI based investing themes.”

“There is still no clarity in terms of how soon we are going to see improvement in terms of earnings. At the same time, most people believe that FY24 earnings may not get impacted to a large extent even after what was witnessed in June quarter or what is likely to happen in the September quarter going ahead. After a bit of consolidation, the market may start looking at FY24 rather than worrying too much about FY23 earnings.”

“Among the newer companies, Zomato is one which I will still place my bet on. The second one would be Nykaa where also we can see their point of presence across and that is one company which has the potential of growing big. Route Mobile is another newly listed company which has a decent business model and can do well.”

“There is no harm in booking profits. So why are people scared of missing the bus? If you book profits now and things move up another 5%, how does it matter? If you have made 30-40-50% it does not matter so much. Long -term investors can never go exorbitantly into cash. So when we think there is overvaluation, we go 20-30% into cash and then as the opportunities keep on coming up, we keep on investing that money and that cycle goes on.”

"We believe that the rally is sustainable since we expect earnings to improve from the third quarter of FY23. However, in case US markets do get into a next stage downturn, we could see volatility in the short term. Hence, investors can maintain a balanced approach and look at a phased approach of deployment into markets if they have surpluses."

“Almost all of the sectors which are closely linked to the investment cycle are seeing more investor interest at this point of time. Asset developers or pure infrastructure companies may not have seen that kind of interest as of now but many of the other pockets which are closely linked to economic growth or which are closely linked to investment cycle, have definitely seen better interest.”

"Small & midcaps tend to outperform their larger peers in a bull market but any reversal in the market trend is very brutal for them. Our recommendation is simple for small & midcap stocks, stay with the companies having strong fundamentals, good growth prospects vis-à-vis their valuations, quality management, and competitive advantages."