Moderation in earnings growth may weigh on equities this year: Vinit Sambre

As stock prices continue to soar, the market may be entering the excessive valuation zone, says Vinit Sambre, head of equities at DSP Mutual Fund. In an email interview with Abhishek Kumar, Sambre says while equities may do well in the long term, it would be prudent for investors to reassess their asset allocation and bring it in line with their risk profile. Edited excerpts:

How do you see the market positioned at this juncture? What is your outlook, considering the valuations and earnings growth expectations?

After enduring a decade of lacklustre single-digit earnings growth from FY10 to FY20, there was a