Risk-reward unattractive, not good time to buy: Gautam Chhaochharia

India has been the best-performing market globally thus far in calendar year 2017. Gautam Chhaochharia, head of India research at UBS Securities, tells Puneet Wadhwa that the current all-time high Nifty valuations can be justified only if we presume double-digit earnings growth into perpetuity. His CY17-end base case scenario target for the Nifty50 index is 9,000. Edited excerpts:
 
The markets are at an all-time high when economic indicators are at a decadal low. What explains this dichotomy?
 
Hopes of growth recovery aided by reforms and strong local retail flows explain the dichotomy. The goods and services tax (GST)