India still a long-term growth story, says Kotak’s Nilesh Shah as markets eye tariff deal

As the Nifty nears 26,000 again, Nilesh Shah, MD of Kotak Mahindra AMC, shared his views on market sentiment, global investor appetite, asset allocation and India’s overheated IPO pipeline on CNBC-TV18’s Editors Roundtable.

Shah believes the recent political outcome provides stability, but says the real focus now shifts to the India–US tariff deal, which could unlock foreign buying. During his recent visit to the US, he saw strong curiosity about India but little immediate deployment. “Everyone was interested in listening about India, but no one was willing to cut the cheque immediately,” he said. A tariff deal, he added, could act as a trigger.

For domestic investors, Shah reiterated the importance of balanced allocation. Reflecting the positioning in Kotak’s Multi Asset Allocation Fund, he said the mix of 55% equity, 20% precious metals and the rest in debt remains suitable for an average investor.

He continues to remain positive on both gold and silver, driven largely by central bank purchases. But he cautioned against chasing momentum: “Don’t chase FOMO… open reports to figure out what central banks are doing.”

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Start Small

On mutual fund flows, Shah expects strength to continue despite higher redemptions during the festive season. With millions of new investors entering markets, he sees both penetration and expansion opportunities ahead.

The primary market boom, however, is stretching analysts and demanding caution. Shah noted that while some companies are exciting, others are overpriced.

Thanks to AI tools, fund houses are able to analyse DRHPs faster, but selection discipline remains crucial. “If you like business and pricing is expensive, start small,” he advised.

Overall, Shah remains constructive on India but reminds investors to moderate return expectations, given historically low inflation levels.

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