Manish Gunwani, CIO-Equity Investments, Nippon India Mutual Fund expects some consolidation in the market in the near term as "the market on aggregate earnings is a bit expensive".

“If you look at the Nifty EPS for FY22, it could be somewhere around Rs 575 to Rs 650; you are looking at almost two-year forward multiple which is 17-18 times, which is pretty high. So I would think that the headline index probably should consolidate here for some time,” said Gunwani in an interview with CNBC-TV18.

Speaking about midcap holdings, Gunwani said, “Where we see value from a two-three-year perspective are a lot of these domestic economy-aligned sectors like autos, financials, real estate, industrials, and consumables. And some part of midcap IT and pharma still looks interesting."

On metals, he added, “I would say we have a mildly positive view. The stocks from the bottom have done well and it is a very risky trade to catch and this has happened for the last two-three years.”