According to CNBC TV18, Gautam Shah, Founder of Goldilocks Global Research, expects the Nifty to remain range-bound between 23,150 and 24,000 for the rest of the year. However, he anticipates the small-cap index could climb to 20,000 and beyond over the next quarter, implying a further 10-12% upside from current levels. Shah noted that while the Nifty has underperformed over the past several years, around 1,700 stocks out of roughly 2,000 listed on the NSE continue to perform, while weakness has been concentrated among large-cap stocks.
As reported by CNBC TV18, Shah believes small-caps, micro-caps, PSUs, real estate, pharma and chemicals remain the key themes for investors. He highlighted pharma, chemicals, PSUs and real estate as sectors that could continue to perform well over the coming months. Shah believes the correction phase in the real estate sector has largely ended after a sharp decline over the past 18 months, expecting the sector to deliver returns over a longer investment horizon. He suggested investors focus on leading developers across key property markets such as Mumbai, Delhi and Bengaluru.
According to CNBC TV18, Shah remains constructive on Indian information technology stocks after a prolonged correction. He said concerns around artificial intelligence (AI) disrupting India's technology services sector are largely reflected in current valuations. The Nifty IT index is approaching a key support zone and may gradually recover, helping reduce the market's dependence on heavyweight stocks such as Reliance Industries and large private-sector banks. Shah expects the artificial intelligence-driven rally in the United States and several Asian markets could continue, while India may lag global peers in relative performance.
As reported by CNBC TV18, Shah continues to favour public sector enterprises, expecting the PSU segment to benefit from government divestment plans and dividend yields, projecting potential gains of 25-30% over a 12-18-month period. He also reiterated a positive outlook on the Adani Group, saying the conglomerate could see stronger performance in the coming months. Shah noted that while the Nifty has underperformed over the past several years, smaller companies have generated strong returns.
