Worst is behind us, markets could hit new highs in 6-12 months: Envision’s Nilesh Shah

Nilesh Shah, Founder of Envision Capital, which managed funds worth ₹2,020.69 crore as of May 31, 2026, expects Paytm to remain on an upward trajectory over the next few quarters, supported by earnings growth, policy initiatives and improving investor sentiment.

Shah believes the prolonged consolidation in equities has created a foundation for the next leg of the market move. He said stronger earnings from large sectors such as banking and information technology, along with a revival in foreign institutional investor (FII) participation, could help benchmark indices reach fresh highs within the next six to twelve months.

"I do believe that there is a very strong case for earnings momentum on a very aggregate basis to be extremely strong over the next few quarters," Shah said.

According to Shah, some of the policy measures introduced in recent quarters are yet to fully reflect in corporate earnings and economic activity. Additional reforms could further improve investor confidence and attract foreign capital flows.

"On the whole, the outlook is constructive. I believe that probably the worst is behind us," he said, adding that markets could continue their uptrend and hopefully the markets will make new highs.

Shah continues to favour sectors that have outperformed despite broader market consolidation. He said digital platforms, defence and aerospace companies remain among the strongest structural opportunities in the market.

He also highlighted opportunities in consumer discretionary businesses that are benefiting from both premiumisation and value-driven demand. According to Shah, these sectors are supported by domestic consumption trends rather than external economic factors.

Commenting on Meta's $900 million investment in CRED and the appointment of Kunal Shah as global WhatsApp CEO, Shah said the development is positive for India's technology ecosystem but is unlikely to materially impact listed fintech firms.

He noted that fintech business models differ significantly from one another, limiting any direct competitive impact on companies such as Paytm or other payment technology players.

Shah described the move as one more global recognition of the power of Indian talent but said he does not expect any direct business implications for the broader technology platform sector.

Shah acknowledged that the upcoming IPOs of the National Stock Exchange (NSE) and NSDL could absorb a portion of market liquidity given their expected size.

However, he believes strong domestic inflows through systematic investment plans (SIPs) and mutual funds should help the market absorb the supply without causing significant disruption.

Apart from traditional growth sectors, Shah said Envision Capital is also tracking opportunities emerging from the growing adoption of GLP-1 medicines.

While direct beneficiaries remain attractive, he sees indirect opportunities in nutrition, protein supplements and multivitamin categories.

According to Shah, increasing consumer focus on health and wellness is creating demand for products that complement GLP-1 usage, making these segments potential long-term beneficiaries of the broader healthcare trend.

For the full interview, watch the accompanying video

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