Risk-reward not favourable in near to mid term: Nomura India's Mukherjee

He says that the market valuation premium over emerging market (EM) peers is around 70% versus the long-term average of nearly 40%

The equity markets have started the second half of 2022-23 (FY23) on a cautious note amid rising inflation and aggressive central bank policies. Saion Mukherjee, managing director and head of India equity research at Nomura, tells Puneet Wadhwa in an interview that given the existing sentiment, there are more downside risks than triggers for an upside from here on. Edited excerpts:

Are the markets completely out of the woods or do you see panic selling every time global central bankers, especially the US Fed, meet to review their monetary policy?

Macro uncertainties remain high. Inflation and rate concerns are acknowledged