Mid-and small-caps appear relatively attractive: BNP Paribas' Raychaudhuri

For FY20, we expect early to mid-teens earnings growth from companies comprising the broader Indian indices. The current Bloomberg consensus growth estimate of 18-19 per cent appears aggressive

Election outcome-related uncertainty has failed to dent market sentiment, with the S&P BSE Sensex and the Nifty50 hitting new highs last week. Manishi Raychaudhuri, Asia Pacific Equity Strategist at BNP Paribas, tells Puneet Wadhwa that in the medium term, monetary policy stances of global central banks are bigger variables governing flows into emerging markets (EMs) than domestic political news. Edited excerpts:

What is your near-term outlook for the markets? 

Indian equities look good from a medium-term perspective. In the near-term, however, the markets could take a breather after the recent sharp rally. In case of significant volatility around the election,