Risk-reward is unfavourable for equities in the near term: Abhay Laijawala

Expecting Sensex/Nifty earnings growth of 16% for current fiscal year & 21% over the next: Abhay

Recent geopolitical events have kept a check on the runaway market rally seen thus far in calendar year 2017 (CY17). Abhay Laijawala, managing director and head of research, Deutsche Equities India, tells Puneet Wadhwa that his December 2017 target for the S&P BSE Sensex is 29,000. Purely from a returns perspective, he expects mid-caps to fare better than large-caps. Edited excerpts:

How big a threat is the developing geopolitical situation in North Korea to the stability of global financial markets?

It is a risk that is of low probability, but also one that can’t be overlooked. Consequently, we see equity markets reacting