Markets can hit highs only after inflation peaks abroad: Taher Badshah

'The key risk for the market at this juncture, especially after this strong comeback, is the resurgence of the known risks of recent times, namely the rebound of inflation and geopolitical tensions'

The latest surge in the markets is driven by change in inflation expectations, says Taher Badshah, chief investment officer, Invesco Mutual Fund. In an interview, Badshah tells Samie Modak that some of the most-talked-about headwinds such as growth slowdown and high inflation might not be fully neutralised. Edited excerpts:

We have seen a sharp revival in market sentiment. What is driving the current optimism?

There are several reasons that can be attributed for the improved market sentiment in the last couple of months. Inflation has been the biggest bugbear in recent times. Easing of commodity prices and global supply chain