Valuations not comfortable in context of interest rates: Janakiraman R

Valuations have definitely come off over the past three quarters, said Janakiraman

When seen along with interest rates, current valuations look better than three quarters ago, but not as comfortable in absolute terms, says Janakiraman R – VP & portfolio manager, emerging markets equity - India, Franklin Templeton. In an interview with Samie Modak, he says small-caps are more attractive than large-caps but only from a three-year investment horizon. Edited excerpts:

Do current valuations offer any comfort?

Valuations have definitely come off over the past three quarters. Current valuations, across market-cap segments, are much closer to the long-term averages. There is clearly comfort on this front. At the same time, interest rates have risen