Gird up for higher volatility in 2022: Edelweiss MF's Trideep Bhattacharya

'We are constructive on mid- and small-caps stocks over the medium term', said Bhattacharya

Valuations appear optically high on the back of depressed earnings estimates in pockets of the market, says Trideep Bhattacharya, co-chief investment officer, equities, Edelweiss Mutual Fund. He tells Ashley Coutinho that persistent higher inflation, combined with faltering economic growth, would be the biggest risk for Indian equities. Edited excerpts: 

What are the biggest risks for the Indian equity market in the coming year? What are the key triggers to watch out for? 

We think 2022 will likely to be the first year of policy normalisation, post-pandemic. In the first half, I would expect the markets to digest the pace of policy normalisation,