We expect equity returns to be muted in next 12 months: CIO, HDFC Life

We are taking a balanced approach towards sectors and hence there is no big call on any particular sector, says Prasun Gajri, Chief Investment Officer, HDFC Life

Markets are building in a sharp recovery in GDP growth and earnings in FY22. Unless these expectations fructify, it will be difficult to justify valuations says Prasun Gajri, Chief Investment Officer, HDFC Life. In an interview to Business Standard, Gajri says a better sense of the FY22 earnings traction will be available over the next 6 months. He believes liquidity alone cannot be the sole driver of markets. Excerpts:

Q. Global and Indian markets saw a sell-off due to concerns about rising Covid-19 cases and news reports on suspicious transactions involving international banks. How far could this problem and sell-off