Won't get a 2008-like opportunity where everything was so cheap: Nilesh Shah, Axis Capital

In a chat with ET Now, Nilesh Shah, MD & CEO, Axis Capital, shares some contra investment ideas.

ET Now: What are your contra ideas in this kind of a market where anything and everything has run up?

Nilesh Shah: As of today, there are limited contra plays from an absolute point of view. But certainly, you have many contra plays from a relative perspective. So, I would say long on private sector banks and short on public sector banks.

ET Now: Short on public sector banks?

Nilesh Shah: Public sector banks have run up in terms of valuation and there is supply emerging. So, that kind of trade can give you value.

You could be playing on the valuation differential between companies within the same sector. Therefore, at this point, long large cap and short midcap probably makes sense.

As of now, the contra takes are going to be driven more by the valuation point of view rather than completely broken-down-sector or completely blood-on-the-street kind of scenario.

As I mentioned earlier, this is a multi-year bull market. So, it is extremely unlikely that you are going to get an opportunity like October 2008 when anything and everything was so cheap to buy. This is not going to give you such an easy entry. This is still a market which is going to give a little bit correction, then consolidate, then move up and keep on testing your patience.