Gupta also dismissed the return of political risk as a long-term concern, but added that this could lead to increased volatility in the markets in the near-term. We do not see it as a long-term concern, but in the short and medium term, market volatility will surely rise. In times of good earnings growth, we see that a bit higher than average P/E can be sustained. So, reported earnings growth will be much lower than what the market is expecting—this is a one-off provision that will happen only in 2018-19, and may be reduce significantly thereafter. The recovery we are seeing in the earnings growth over the last couple of quarters—are the green shoots real?

Source: Mint March 22, 2018 23:37 UTC