Markets in midst of liquidity boom; time to be cautious: S Naren

The liquidity fuelled by global central banks is likely to come off over the next year, says S Naren

India has been one of the best-performing equity markets across the globe, with a rally of over 25 per cent in 2017. S Naren, executive director and chief investment officer of ICICI Prudential Mutual Fund, tells Puneet Wadhwa the country will remain an attractive market for foreign investors despite the rich valuations. Edited excerpts:

How will India fare in 2018? 

We are in the midst of a liquidity boom, with huge inflow into equities from both, domestic and foreign investors. While these are no longer cheap, we are positive on the markets, as we believe corporate earnings will catch pace over the