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Market cap to GDP indicates no sign of overheating: S Krishna Kumar

The main risk for Indian equities is delayed earnings growth, says S Krishna Kumar

S Krishna Kumar
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S Krishna Kumar, chief investment officer of equity at Sundaram Mutual

Ashley Coutinho
Our market cap to gross domestic product (GDP) ratio stands at 77 per cent, well below some of the developed markets that are trading above 100 per cent, says S Krishna Kumar, chief investment officer of equity at Sundaram Mutual. In an interview with Ashley Coutinho, he says the main risk for Indian equities is delayed earnings growth. Edited excerpts:
 
The markets are near their all-time highs. Is there some correction around the corner? What are the likely triggers and risks for the markets from here on?
 
Over the last few months, Indian markets have brought out inherent