Changes in interest rates, liquidity to drive mkt: Nippon India MF's Bhan

Sailesh Raj Bhan says earnings in Q1 have been better than market expectations in sectors that have been supported by the recovery of global growth like IT services and metals

The recent up-move in the markets has led to some elevated valuations, says Sailesh Raj Bhan, deputy chief investment officer – equity investments, Nippon India Mutual Fund. He tells Ashley Coutinho in an interview that the growth to valuation equation is favourable to large-caps given the low base of earnings over the last five years. Edited excerpts:
 
What are the key triggers for Indian equities going forward?
 
Indian companies have shown strong earnings momentum in the first quarter of financial year 2021-22 (Q1FY22) and good distribution of earnings, especially from global growth sectors such as metals and IT