Risk can play out rapidly on any sign of inflation: Fidelity's Nitin Sharma

In a Q&A, the Director-Research, Fidelity International says while earnings have been supported by margin expansion in the last few quarters, they will be more revenue-linked going ahead

Abundant global liquidity has meant valuations are getting anchored on earnings three to four years out, which clearly raises the investment risk profile, says Nitin Sharma, Director-Research, Fidelity International. In an interview with Ashley Coutinho, he says that while earnings have been supported by margin expansion in the last couple of quarters, they will be more revenue-linked in the coming period. Edited excerpts:

What is your outlook for 2021 and what are the key triggers to watch out for in the near to medium term?

If you look from an economic performance perspective, we will see a sharp rebound in