The Indian market needs a pause or some correction, according to Nilesh Shah, Managing Director, Kotak Mahindra AMC, who believes that the shares are trading at a sharp premium versus peers and historical levels.

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“The market has to take a little bit of respite and even correct a bit. We are at a stage where there is a need for consolidation. And the next move of the market will be dependent upon whether global uncertainty starts receding or starts increasing,” said Shah in an interview with CNBC-TV18.

“I hope and pray that others' valuation starts improving and hence the gap narrows rather than our valuation coming down,” he added. Shah has advised investors to hold onto SIPs

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He is bullish on capital goods and industrials and believes the shift of manufacturing from China to India is likely to be a booster shot for the country.

"We believe these companies now have started receiving orders not only from the government but also from the private sector. Overall industrial and the capital dose is one sector where we believe there will be a great opportunity in the years to come," added Shah.

For the entire interview, watch the accompanying video

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