Markets likely to stay in 'buy on dips' phase: Bernstein's Venugopal Garre

Markets have run ahead of fundamentals, but this has been a broad global trend, says Venugopal Garre

Despite a sharp run-up from their March 2020 low and high valuation, the markets are likely to stay in the “buy on dips” phase, with index returns remaining range-bound, but the broader markets generating returns, says Singapore-based VENUGOPAL GARRE, India strategist at Bernstein, in an interview with Puneet Wadhwa. Edited excerpts:

Would you classify India as a “buy-on-dips” or a “sell-on a rally” market?

The Nifty index valuation at 21x forward price-to-earnings (PE) is now at a historic peak. Near-term earnings, however, largely reflect the Covid-19 impact and hence, may not be a representative of the true earnings potential for