Despite rally there are opportunities in markets, says Manishi Raychaudhuri

The preference on energy arises from recent regulatory changes, says the strategist

The Nifty 50 hit the 10,000-mark last week. It has gained 22 per cent so far this year. Manishi Raychaudhuri, Asia Pacific equity strategist and head of equity research, Asia Pacific, at BNP Paribas, tells Puneet Wadhwa that though he remains overweight, the extent of that position has reduced slightly in the past couple of months, as India’s valuation premium to Asian peers has increased markedly. Edited excerpts:

Are global equity markets nearing a bubble? 

Global equity valuations are stretched but such overvaluation is concentrated in some pockets. Developed markets, particularly the US, are more expensive than emerging markets (EMs). Within EMs,