The Indian stock market has seen a notable recovery of approximately 7% from its lows in March, with mid- and small-cap stocks outperforming larger counterparts. However, Nilesh Shah, Managing Director of Kotak Asset Management Company, warns of volatility, referring to the current market as a 'kangaroo market'—one that fluctuates unpredictably in response to global and domestic events. Key concerns influencing market sentiment include geopolitical risks in West Asia, particularly regarding the safety of 9 million Indians and the implications of rising oil prices, which are currently $20–30 higher than anticipated in budget forecasts. Shah emphasizes the need for investors to remain selective, focusing on companies that exhibit adaptability and innovation, especially in the technology sector where mid-cap firms are leveraging artificial intelligence more effectively than larger corporations. As the market faces headwinds, alternative investment options such as gold and credit AIFs are becoming increasingly appealing. Shah predicts that while the market has absorbed some geopolitical shocks, the broader economy may soon feel the strain, particularly as disruptions in supply chains could lead to sustained cost pressures.