Market may be due for both price and time-wise corrections: Jigar Shah

The current rally has an implied assumption that interest rates will remain permanently negative and inflation 'pick up, but this is quite unlikely

The markets may have run up too fast, too soon, says JIGAR SHAH, chief executive officer, Maybank Kim Eng Securities. The brokerage's March 2021 target for the Nifty since the Covid-19 outbreak was 8,100, based on a price-to-earnings ratio (P/E ratio) of 14x two-year forward earnings. As things stand, Maybank is keeping this forecast unchanged, he tells Puneet Wadhwa in an interview. Edited excerpts:
 

Are the markets ripe for a correction?

The market may be due for both price and time-wise correction as, eventually, stock prices are the slaves of earnings. The Bloomberg consensus one-year forward P/E ratio for the