Markets will be in consolidation mode for some time: Manish Gunwani

From a two- to three-year perspective, the market looks reasonably rewarding after the recent correction.

While valuations have improved, following a sharp correction in the market and intense volatility as central banks tighten monetary policy, MANISH GUNWANI, chief investment officer for equity investments at Nippon India Mutual Fund, in a conversation with Chirag Madia, spells out key issues foreign investors are facing when it comes to allocating capital to India. Edited excerpts:

What, according to you, is the key source of volatility we are witnessing right now?

For the most of the past decade, markets have benefited from low-interest rates, which were dependent on inflation remaining low. In the past year, inflation has shot up beyond expectations