UBS is underweight on Indian equities within EM/Asia: Sunil Tirumalai

Valuations in India, he said in this interview, are pricing a lot more 'sentiment' premium than what fundamentals of the stocks can explain

Despite the sharp and swift correction in the mid-and small-caps in the last few weeks, SUNIL TIRUMALAI, emerging markets and India Strategist at UBS Securities tells Puneet Wadhwa in an email interview that there is still a lot of richness in mid/small cap valuations that needs to subside before one can be constructive. Edited excerpts:

As a strategy, are you bullish or bearish on the markets as things stand from a short-term perspective?

UBS is underweight on India equities within the emerging market/Asia context. Given where equity valuations are compared to bond markets, it makes more sense to look at