Manufacturing boom over next 5-10 yrs will surprise everyone: Vikas Khemani

The market recovery is surely sharp and gives the feeling of euphoria. but one should not forget that on the other side of the Covid crisis lies a great future, says Carnelian Asset Management founder

Vikas Khemani, founder, Carnelian Asset Management, tells Vishal Chhabria that there may be short-term correction and volatility in the markets. He says that low interest rates augur well for equities. The drop in interest rate compensates for the lack of earnings, which will eventually come back. He expects manufacturing GDP to hit $1 trillion in five-seven years. Edited excerpts:

The markets have run up sharply and the leading indices are 10-12 per cent from all-time highs, but earnings visibility hasn't improved commensurately. Are the markets in a bubble zone?

The market’s recovery from the bottom is surely sharp and gives