Sentiment will remain buoyant on easing monetary fears, says Vinit Sambre

As inflationary pressures unbind, corporate earnings growth will draw level, says Vinit Sambre, head-equities, DSP Investment Managers

Valuations had turned attractive in June. There were even inklings of a massive selling by foreign investors winding down. VINIT SAMBRE, head-equities, DSP Investment Managers, in conversation with Samie Modak, says as inflationary pressures unbind, corporate earnings growth will draw level. Edited excerpts:

The benchmark indices have bounced nearly 15 per cent from June lows. What has led to this reversal in sentiment?

In June, valuations had turned reasonable and fears associated with the US Federal Reserve tightening had been priced in.

India has favourable macros, compared to other emerging markets, and the turn in sentiment was legitimate.

The sentiment is likely