New Delhi, Aug. 17 -- India's stock market may have little reason to break out of its range in the near term, with valuations needing to cool, the global artificial intelligence (AI) trade losing some momentum and foreign investors eventually returning, according to Anthony Heredia, managing director and chief executive officer of Mahindra Manulife Mutual Fund.

In an interview with Mint, Heredia, who oversees assets worth Rs.38,650 crore, said investor sentiment remains balanced rather than euphoric or pessimistic. The market has been "strictly range-bound" for the past two years, he said, and could remain so for another six to nine months.

"It's a normal structural consolidation phase, not a red flag," Heredia said.

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