Mkt hasn't adequately factored in risks to growth: Nomura's Saion Mukherjee

If inflation-related issues get more structural and last longer, rates can continue to surprise further on the upside, leading to contraction in valuation multiples: Saion Mukherjee

As the markets adjust to the possibility of a faster-than-expected hike in interest rates, Saion Mukherjee, managing director and head of equity research, India at Nomura, tells Puneet Wadhwa in an interview that if inflation-related issues get relatively structural and last longer, interest rates can continue to surprise further on the upside, leading to contraction in valuation multiples. Edited excerpts:

Have the markets digested the worst-possible macroeconomic scenarios, or is it just a temporary pullback until the LIC IPO sails through?

The Indian market is largely flat year-to-date (YTD). However, there is a divergence in sector performance. Value has outperformed