We expect a catch-up trade in Indian equities, says Prakash Kacholia

US payroll numbers released recently point to Goldilocks scenario: unemployment at 53-year low, and yet moderating wage gains, says Prakash Kacholia, MD, Emkay Global Financial Services

It has been a rough ride for the markets so far. Prakash Kacholia, managing director at Emkay Global Financial Services, in conversation with Puneet Wadhwa, says neither the domestic investors nor foreign ones have the muscle to take the market forward if the fundamentals don’t support it. Edited excerpts:

Have global markets fully discounted the negatives of a recession and what the central banks may do to revive growth?

The developed and emerging markets (EMs) have rebounded strongly since October lows, as growth has held up relatively well, even as inflation has moderated significantly.

The US payroll numbers released recently