Markets seem to be factoring in ruling party's return: Ashish Gumashta

'We see the earnings growing by 11-12% in FY19 and then improving to 17-18% in FY20', said Julius Baer's CEO Ashish Gumashta

With the tenure of the 16th Lok Sabha coming to an end last week, the country is now gearing up for the general elections. ASHISH GUMASHTA, chief executive officer, Julius Baer India, tells Puneet Wadhwa that the markets would like to see the arithmetic that works out among the parties post the election, the composition of the new government and the immediate full-year Budget before forming a more decisive opinion about the policies of the new regime. Edited excerpts:

What is your market outlook? 

While our medium-to-long-term fundamental outlook on Indian equities remains positive, we are cautious on the markets