Our FY19-end target for Sensex is around 34,000, says Ambit Capital CEO

At a time when the markets are grappling with rising bond yields, a Rs 114-billion fraud in India's second-largest public sector lender and the possibility of the US Federal Reserve raising interest rates, SAURABH MUKHERJEA, chief executive officer, Ambit Capital tells Puneet Wadhwa that he expects double-digit corporate earnings growth in FY19. Edited excerpts:

Do you see the markets drifting lower over the next few months?

The overall market is still overvalued. The fair value for the S&P BSE Sensex at FY18-end is around 30,000 and the fair value for a year hence is around 34,000. At present, large-caps are