We are not increasing allocation to cash, says Prasun Gajri, CIO, HDFC Life

Prasun Gajri says that while valuations are on the higher side, market correction is likely to be triggered only by a liquidity reversal, driven by global events or any dent in earnings expectations.

With the markets trading near record high levels, PRASUN GAJRI, chief investment officer at HDFC Life, tells Puneet Wadhwa in an interview that while valuations are on the higher side, market correction is likely to be triggered only by a liquidity reversal, driven by global events or any dent in the earnings expectations that are already built-in. Edited excerpts:
 

What is your outlook for the markets for the remaining part of 2021?
 

We are long-term investors and are not focused much on the short-term market movements. Currently, the market is trading at a new high and valuations are above long-term