Hard to see participants increasing exposure to mid-caps: Ambit Capital MD

'Globally, the biggest risk emerges from the continued tightening of liquidity by central banks, primarily US Fed which is on a retreat from its quantitative at a time when the US deficit is rising'

The markets put aside global concerns and continued their movement upwards last week. PRAMOD GUBBI, managing director and head of institutional equities at Ambit Capital, tells Puneet Wadhwa that due to India-specific macro concerns, global liquidity tightening and political risks, foreign flows will likely be neutral to negative going ahead. Edited excerpts:

Are the markets ripe for a time-wise and a price-wise correction?

Yes, I would tend to agree. At least the former, if not the latter. Given the number of potential negative catalysts on the horizon — both local and global — and given where valuations are, I would reckon there