Risk-reward is unfavourable for investing at current levels: Chhaochharia

Mr Modi's reform agenda has aided investors in ignoring earnings disappointments over the past four years, Chhaochharia says

The Karnataka election outcome, crude oil prices and the rupee kept investors on the edge last week. GAUTAM CHHAOCHHARIA, head of India research, UBS Securities, tells Puneet Wadhwa that foreign investors’ concerns now revolve around the banking sector’s non-performing loans and fraud cases, inflation and rising oil prices. Edited excerpts:
 
How do you see the markets play out for the rest of 2018?
 
Our end-2018 Nifty base, upside and downside scenarios of 10,500, 11,900 and 8,800 (respectively) imply unattractive risk-reward from current levels for rest of the year. The Karnataka assembly election result may add to expectations of