There is a real risk of a significant market correction: Saurabh Mukherjea

Interview with Saurabh Mukherjea, chief executive officer, Ambit Capital

With the markets rallying to all-time highs, SAURABH MUKHERJEA, chief executive officer, Ambit Capital tells Puneet Wadhwa if investors wish compound returns from their portfolio, they need to buy high quality stocks and leave these untouched for a decade. Edited excerpts:

What is your outlook for the markets over the next six to 12 months?

At 18 times the (estimated) forward earnings, the market appears to be overvalued but not radically so. If double-digit earnings growth were to fructify in FY18, the current overvaluation could sustain. Our fear is that, as in the past four years, earnings growth for the S&P