'Middle overs in 50-over match': What Ashish Shanker says on stock market consolidation
Stock market: Shanker said India can be considered a high-scoring pitch with stable macro conditions and all the right drivers in place for a long innings.
- Jul 29, 2025,
- Updated Jul 29, 2025 3:12 PM IST
Ashish Shanker, MD & CEO at Motilal Oswal Wealth in his latest newsletter called the prevailing phase of consolidation in the market as "middle overs" in a 50-over cricket match. It is where you build the innings, not slog, Shanker said in the latest Apha Strategist report.
From a cricket analogy perspective, Shanker said India could be considered a high-scoring pitch with stable macro conditions and all the right drivers in place for a long innings. Much like initial PowerPlay overs, March and April 2025 corrections were the time to be aggressive as entry levels provided a margin of safety, he said adding that the last three months were more about quick gains.
Talking about the prevailing market momentum, Shanker said like middle overs in a cricket match, it is time: "You rotate strike, protect your wicket, and quietly set up for a strong finish. In markets, it is the phase of steady accumulation, managing risk, and preparing portfolios for the future rally. In the middle overs, discipline and strategy win, not blind aggression. One should focus on building and avoid taking aggressive risks."
For equity investments, Shanker continued to suggest a neutral allocation ratio of 65:35 to large and mid & small caps respectively, with lump-sum allocations to hybrid funds and staggered SIP/STP routes for pure equity-oriented strategies.
"Any sharp corrections should be used as a loose delivery, an opportunity for aggressive deployment. In Fixed income, the yield curve has steepened over the last 3 months due to the RBI's actions on the rates and liquidity front," he said.
The Motial Oswal Wealth CEO said the RBI is now in a mood to curb excess liquidity, and hence, further OMO purchases may not happen. FII flows have also been negative in debt for the last 3 months, indicating profit booking as US and India 10-year spreads narrowed to less than 2 per cent.
"Given limited headroom, softening of the yields should be used as an opportunity to gradually reduce exposure from long-duration in the 10-15 year segments. We suggest allocation to accrual strategies across the credit spectrum and to income-generating assets," he said.
Ashish Shanker, MD & CEO at Motilal Oswal Wealth in his latest newsletter called the prevailing phase of consolidation in the market as "middle overs" in a 50-over cricket match. It is where you build the innings, not slog, Shanker said in the latest Apha Strategist report.
From a cricket analogy perspective, Shanker said India could be considered a high-scoring pitch with stable macro conditions and all the right drivers in place for a long innings. Much like initial PowerPlay overs, March and April 2025 corrections were the time to be aggressive as entry levels provided a margin of safety, he said adding that the last three months were more about quick gains.
Talking about the prevailing market momentum, Shanker said like middle overs in a cricket match, it is time: "You rotate strike, protect your wicket, and quietly set up for a strong finish. In markets, it is the phase of steady accumulation, managing risk, and preparing portfolios for the future rally. In the middle overs, discipline and strategy win, not blind aggression. One should focus on building and avoid taking aggressive risks."
For equity investments, Shanker continued to suggest a neutral allocation ratio of 65:35 to large and mid & small caps respectively, with lump-sum allocations to hybrid funds and staggered SIP/STP routes for pure equity-oriented strategies.
"Any sharp corrections should be used as a loose delivery, an opportunity for aggressive deployment. In Fixed income, the yield curve has steepened over the last 3 months due to the RBI's actions on the rates and liquidity front," he said.
The Motial Oswal Wealth CEO said the RBI is now in a mood to curb excess liquidity, and hence, further OMO purchases may not happen. FII flows have also been negative in debt for the last 3 months, indicating profit booking as US and India 10-year spreads narrowed to less than 2 per cent.
"Given limited headroom, softening of the yields should be used as an opportunity to gradually reduce exposure from long-duration in the 10-15 year segments. We suggest allocation to accrual strategies across the credit spectrum and to income-generating assets," he said.