The bulls are back on Dalal Street and so are the FIIs. Nifty and Sensex snapped a 2-week losing streak gaining around 2 percent each. Midcap index was up for the 12th straight week.

Nilesh Shah, Managing Director at Kotak Mahindra AMC believes that Indian markets will be the only oasis in the world once the sand storm settles.

“If you look at the world, there is a massive sand storm blowing out there. If you look inside India it looks like oasis in the desert. Short term fundamentals of India will get impacted by global sand storm but once the dust settles, India will be the only oasis in the world.”

Shah said Nifty is likely to test 20,000 in 2023.

“It is always difficult to predict short term movement but definitely in 2023 we will see 20,000 coming on Nifty.”

Shah remains positive on banking, industrials and capital goods sector.

“Over next 12-18 months banks will have better profitability as interest rates start stabilizing and all the treasury losses which people have booked starts getting converted into income. The second sector where we see profitability picking up pace is industrials and capital goods. The operating leverage is kicking in capital goods and we believe profitability growth there will be superior.”

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