FOMO on market rally overshadowing economic environment: Prakash Kacholia

As the markets continue their journey north into unchartered territory, PRAKASH KACHOLIA, managing director at Emkay Global Financial Services, tells Puneet Wadhwa in an interview that investors may get better opportunities in mid- and small-caps going ahead. Edited excerpts:

Are the markets being overoptimistic on the economic conditions and Covid-19 vaccine?

The inflow of over Rs 60,000 crore of funds into the Indian markets from foreign portfolio investors (FPIs) in November would defy all moods. A reversal in FPI inflows can halt the rally. The trailing price-to-earnings (P/E) ratio of Nifty is 37.20, compared to the historical average of around 21. Global