Bettering 2017 returns will be challenging: Motilal Oswal MD Navin Agarwal

He says certain segments in mid-caps are trading at a significant premium and some caution is warranted in that space

The Indian markets have extended last year’s gains but 30 per cent returns in 2018 will be challenging, says Navin Agarwal, managing director, Motilal Oswal Financial Services. In an interview to Samie Modak, Agarwal says the optimism on the Street hinges on improvement in earnings recovery. Edited excerpts:

After rallying 28 per cent in 2017, the Indian markets have risen another 7 per cent at the start of 2018. Do you think we are entering bubble territory? 

No, we are not. While market is trading at rich valuations, given the underlying expectations of an earnings recovery and a strong start to