Opportunities available in broader market: Nilesh Shah

The market touched record highs on election results day with the Nifty50 hitting 12,000 and BSE Sensex 40,000 intraday, though both indices cooled off from their day's high in the afternooon trade on May 23.

Current leads of more than 340 seats indicate that BJP-led NDA is expected to form government at the Centre for the second time in a row.

Indices are at higher levels but broader markets are not at the same level, Nilesh Shah, MD at Kotak Mahindra Mutual Fund said, adding benchmark indices stocks are at high valuations, but opportunities are available in broader markets where broader indices may remain at same levels.

Now with uncertainty over government formation gone, the key focus would be on the revival of investment (which was on backfoot due to elections) and consumption, he told CNBC-TV18.

On NBFC, which has been hit by liquidity concerns, Nilesh Shah said NBFCs exposed to realty sector are in trouble, but big corporates or professionally managed good companies are better in shape.

"I hope NBFC crisis should not result into solvency problem and real estate sector should not impact NBFC and finance companies," he said.

Since September 2018, India got into trouble, but managed to survive liquidity crisis, he said.

On commercial papers of worth more than Rs 1 lakh crore, which are coming for redemption, Nilesh Shah said bulk then are at 90-day papers and this is normal behaviour and not abnormal.

As long as refinance is possible, these numbers can manage easily, he said. "Out of Rs 1 lakh crore, 90-95 percent is refinanceable due to good quality companies."

The Monetary Policy Committee will meet for three days (June 3, 4 and 6) before announcing policy decision.