Too early to say that financial sector is out of the woods: M Raychaudhuri

Present liquidity-driven rally does generate some concerns about the market moving ahead of fundamentals, says Raychaudhuri

Indices have gained steady ground since the government cut corporation tax in September, despite global and domestic headwinds. Manishi Raychaudhuri, head of equity research for Asia Pacific at BNP Paribas, tells Puneet Wadhwa that the present liquidity-driven rally does generate some concerns about the market moving ahead of fundamentals. Edited excerpts:

Has the rally since September put the markets much ahead of fundamentals?  

In the context of continuing macro-economic slowdown and declining corporate earnings estimates, the present liquidity-driven rally does generate some concerns about the market moving ahead of fundamentals. That said, the equity markets have been strong over the past five-six