Return of the DIIs is not priced into the market yet, says Elara Capital MD

The current market up move should not be seen as a rally, but more as a re-bound or risk-on after the poll debacle of the current incumbent government in Rajasthan and Madhya Pradesh state elections

The near 8 per cent rally in the frontline benchmarks thus far in calendar year 2019 (CY19) has mostly been fuelled by foreign flows. HARENDRA KUMAR, managing director for institutional equities, at Elara Capital tells Nikita Vashisht that post the election outcome later this month, market will start to price in a continuation of policies and a strong recovery of the earnings cycle, which will be the bedrock of new bull-run. Edited excerpts:

After a sharp rally since March, do you now expect the markets to consolidate over the next couple of quarters?
 

The current market up move should not