Markets always absorb geopolitical shocks, says HDFC Securities CEO

Prospects of higher growth, political stability, and superior returns will continue to attract foreign capital into India, believes Dhiraj Relli, managing director and chief executive officer, HDFC Securities. In an interview with Ashley Coutinho, he says the Indian markets have been trading at a premium to other emerging markets and will continue to command higher valuations. Edited excerpts:

What is your equity outlook for the coming months?

Markets have been volatile lately as the Indian economy countered multiple headwinds in a short span of time. Higher energy costs are fueling inflation across the economic spectrum. Consumer inflation has surpassed the