Hard to make a case for a material upside in this market: Saion Mukherjee

As the pandemic recedes and growth recovers, we may see inflationary pressures, says Mukherjee

It has been a roller-coaster ride for the markets over the past few weeks. SAION MUKHERJEE, India Equity Strategist at Nomura, tells Puneet Wadhwa in an interview that the markets are not factoring in any material deterioration in macros at the moment, as there is high confidence in growth and favorable external environment with portfolio flows and high forex reserves. Edited excerpts:

Are the risks of a downside more for the markets now than upside triggers? Have they run ahead of fundamentals?

We expect high volatility in the markets in 2021. The economic recovery in India and the rest of the world