Markets aren't overheated at current levels: Rahul Arora of Nirmal Bang

Markets have already scaled a wall of worry - from tariff tensions and border skirmishes to unrest in West Asia, says Arora

India is the most richly valued market among developed and emerging economies, but as long as its growth continues to outpace peers and macroeconomic stability holds, it will keep drawing a steady stream of foreign inflows, says Rahul Arora, chief executive officer for institutional equities at Nirmal Bang, in a telephonic conversation with Puneet Wadhwa. Edited excerpts: 

Have markets moved past the Trump tariff threat trade and into TACO (Trump Always Chickens Out) territory? 

In our view, tariffs for most countries are likely to settle in the 10–20 per cent range, and markets have largely priced that in. Where negotiations