'Risks to global markets could arise from central bank rate actions'

Market is building an earnings growth of 10-12 per cent for FY23, which seems achievable given the present earnings momentum and economic outlook, says Sanjay Chawla of Baroda BNP Paribas MF.

Global financial markets are now eyeing the outcome of the US Federal Reserve meeting on rates next week. SANJAY CHAWLA, chief investment officer – Equity at Baroda BNP Paribas Mutual Fund, tells Puneet Wadhwa in an interview that the Indian markets are building an earnings growth of 10-12 per cent for FY23, which seems to be achievable given the present earnings momentum and current economic outlook. Edited excerpts:

Did the sharp rebound in the markets since July take you by surprise?

The rebound in the markets coincided with the result season where most corporate commentaries were positive, particularly the ones