Market return will track earnings performance: Rahul Singh, Tata MF

Headline valuations are at 10-15 per cent premium to 10-year historical range, but are supported by the lower bond yields in comparison to what we have witnessed in the last decade, Singh said

Fear of a third wave of Covid infections coupled with inflation concerns have kept the equity market rally in check. RAHUL SINGH, chief investment officer for equities at Tata Mutual Fund, tells Puneet Wadhwa in an interview that as regards India, inflation risk and how that plays out into bond yields going ahead remains the biggest risk to equity valuation. Edited excerpts:

What is your outlook for the markets for the rest of 2021?

Headline valuations are at 10-15 per cent premium to 10-year historical range, but are supported by the lower bond yields in comparison to what we have