High valuations could tame the bull this fiscal

"GIVEN THE EXCEPTIONAL returns observed in FY24 across various indices, it would be prudent for investors to moderate their expectations for FY25," said Nilesh Shah, MD of Kotak AMC.

According to Shah, valuations are a worry, especially in the small and mid-cap segments."While the Indian market remains well-poised for long-term growth, the valuation metrics suggest a cautious approach. Small and mid-cap indices, in particular, have reached valuations that warrant a careful assessment of growth prospects against potential risks," he added.

UR Bhat, co-founder of Alphaniti Fintech, said that investors can earn 10-15% returns in FY25 even as he pointed out that high valuations could limit gains in the broader market.

"The performance of mid and small-caps has been exemplary. There might be some lull there, but for large-cap stocks, you can't really argue that they are terribly expensive," he said.