Markets are at starting point of a mid-to-long term bull run: Ajit Banerjee

The mid and small caps look a bit heated up from a near-term perspective. The earning yields of mid and small-cap stocks on a trailing 12-month basis are higher than that of largecaps

It has been a good run for the equity markets off-late with the Sensex and the Nifty scaling up to record highs. AJIT BANERJEE, chief investment officer at Shriram Life Insurance Company, shares his outlook for the markets with Harshita Singh in an email interview. Edited excerpts:

Is the current market rally sustainable or are equities now ripe for correction?

Currently, it seems that Indian markets are at the starting point of a mid-to-long term bull run. The small and midcap indices have outperformed the larger benchmarks during the current quarter, lending strength to the trend of narrowing valuation differential.