What is your observation? Some areas where you are particularly excited that companies will do phenomenally well because of the partnership with the government? One is getting a sense that the reform momentum in India is not stopping anytime soon. The sideways movement will be short term, our fundamentals will end up giving further pushes to the valuations levels which are there and we continue remaining bullish and fully invested into the markets at this point of time. Our belief is that in India, the long-term story remains intact and it will become stronger because of the structural changes and the reforms that have been implemented in the country. While there are some fears of tapering being just round the corner, with liquidity which is the heart of this global run across asset classes instead of the fundamentals that we have spoken about. We have always remained bullish over the last one year and we continue to remain so. But let us also understand that all the stimulus that the government has provided during this period, firing on all cylinders to reduce the economic impact of Covid, loosening of the fiscal deficit and combination of public expenditure, has led to valuations coming back into focus and fundamentals coming back into shape. Fundamentals have chased liquidity led high valuations. Usually there is liquidity chasing fundamentals but because of the last one year-one and a half year pandemic, it has been the exact opposite. Now that the fundamentals are falling in place, could the markets be catching some breath?

Is there a case for a bit of a corrective sideways consolidation in the market? Macro indicators have turned bullish and 12 months back the market had rallied with shaky fundamentals.

'It is time to be invested in the markets at least with a five year plus perspective to end up getting returns which are going to be fabulous from an Indian perspective,' says Prasanth Prabhakaran, MD & CEO, Yes Securities.

Prasanth prabhakaran