The markets are factoring in a minimum of 15 per cent growth in earnings, says Gopal Agrawal, chief investment officer for equities at Tata Asset Management in a chat with Puneet Wadhwa. Besides being bullish on the banking sector, he remains overweight on infrastructure and pharmaceutical sectors as well. Edited excerpts:
What are the chances of a market correction given the run-up so far in 2017 (CY17)?
Given the strong macro and growth recovery, it is unlikely that the market will correct significantly. Earnings growth expectation has reached close to 20 per cent per annum over FY17, to FY19 estimates (FY19E). Improvement in earnings and lower interest rate can drive the market higher.
