what is your assessment of the prevailing market situation after the recent rally the market is doing well since the start of this year due to factors like weakness in the us dollar cut in lending rates improvement in global markets buying by mutual funds a good budget and limited impact of demonetisation leading to betterthananticipated q3 results india has fetched 28 return from its 52week low this was also led by good news across sectors like banks it pharma energy and telecom banking is doing well led by stockspecific rally while the it sector is performing mostly owing to the buyback offers the pharma sector which was under pressure due to fda actions was available at cheap valuation compared to historic parameters hence emerging as a value pick similarly a sudden signal of consolidation in telecom has come as a blessing to the highly competitive sector with depressed profitability outlook consolidation will reduce competitive pressure cut capex and improve profitability to the incumbent listed players this news has the strength to improve the sectorspecific outlook and create value for shareholders in the longterm are companies coming out of the demonetisation overhang better than expected at the time of demonetisation the market expected a disruptive impact to the economy it was feared that q3 results will be negative but by the end of december 2016 corporate and economic data suggested that the consequence of demonetisation would be limited to the shortterm sensexadjusted pat growth for december quarter is about 23 while it was anticipated that it could be negative now the equity market has reverted to more than 5 above the demonetisation day levels as a result many sectors and stocks which were down in novdec 2016 due to dependence on cash are catching up today what is the next big trigger for the market three positive triggers in the shortterm are supportive results of the state elections to the ruling government push in profitability led by the implementation of gst and continued weakness in usd some of the negative triggers could be not so positive results from the state elections high valuations cap in further cut of interest rate and possibilities of setbacks from us policy and fed rate hike which sectors do you expect would perform well in coming years we are more positive on infrastructure construction real estate banks and consumer durables this is led by focus of the government on capital spending rural oriented reforms improvement in consumer income and reducing interest trajectory at the same time we are also slowly converting our view positively for it and pharma sector which are available at attractive valuations compared to the historical parameters with the rbi shifting policy stance to neutral have we seen the last of rate cuts the rbis change in policy stance was a surprise but recent data suggests it was essential core inflation is getting sticky at 509 while food inflation is under deflation at 06 and will reverse as economy gets traction postdemonetisation