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Gautam Shah sees midcaps and smallcaps stealing the show for the rest of the yearShah is watching for a close above 25,200 on the Nifty, which he says could trigger a rally to 26,200, with a possible pause around 25,600.By Prashant Nair    | Surabhi Upadhyay    | Nigel D'Souza   June 12, 2025, 12:44:58 PM IST (Published)2 Min ReadEven as the Nifty flirts with lifetime highs, the real action may lie elsewhere, says Gautam Shah, Founder at Goldilocks Global Research. “The real opportunity is mid caps and small cap. Broader market is the opportunity, not now, but I think for the rest of the year,” he said. “So forget the headline indices and focus on the broader markets.”

According to Shah, the recent quiet in the Nifty is typical of a strong bull market, where you see market cap rotation. His target for the Nifty is a close above 25,200, which could then set up a rally to 26,200, a potential stopover at 25,600.

Among sectors, he likes the entire infra space and believes power is also shaping up well. “The top four or five names in both of these sectors (infra and power) look very good to us. They could generate 25 to 30% upside over the next six to 12 months.”

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Shah also flagged renewed interest in pockets like capital goods, sugar and paper.

He’s cautious on defence stocks despite their sharp rally. “There are very clear signs of fatigue. I will want to believe that there is a greater fools theory that seems to be playing out there,” Shah said. “I agree it’s a great story for the next five years, but for investors, there are some amazing opportunities across the board.”

He's bullish on the entire PSU banking sector. "That's a theme that's going to play out beautifully. Valuations are comfortable. Charts are great. They're all coming out of three months of consolidation," he noted.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tagsfund managerfund managersMarket Outlook