Market rally fundamentally justified and not a bubble: Hemant Majethia

Market outlook: Several factors have been driving the sustained strength in the markets - supportive policies, significant infrastructure investments, and overall economic growth

Given the current market/economic conditions and historical trends, HEMANT MAJETHIA, chief executive officer and founder of Ventura Securities expects a reasonable appreciation of around 8 – 10 per cent over the next 6-12 months in the frontline indices. Young investors, he said in an email interview with Sirali Gupta, should stay disciplined and think long-term. Edited excerpts:

With certain segments of the market trading at elevated valuations, do you see signs of overheating or irrational exuberance?

Several factors have been driving the sustained strength in the markets - supportive policies, significant infrastructure investments, and overall economic growth. Rising income and disposable income