Equity returns are likely to remain muted, says Sanjay Mookim

With elevated price-earnings ratios, we recommend investors avoid risk in Indian equities, says Sanjay Mookim

Equity valuations remain high — while India continues to trade at a 50 per cent premium to emerging market (EM) multiples, earnings have been lacklustre. In this context, not many investors appear to be viewing India favourably for the next few months, SANJAY MOOKIM, India Equity Strategist, Bank of America Merrill Lynch, tells Puneet Wadhwa. Edited excerpts: 

How do you see flows to EMs pan out over the next one year? What about India?

Outflows, of both debt and equity from EMs, have increased recently. Several EM currencies have depreciated materially, prompting strong central bank action. A strong US dollar,