The market returns for the year 2021 is likely to be up-fronted, said Mahesh Nandurkar of Jefferies as he remains bullish for the first 6 months of this calendar year.

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Speaking to CNBC-TV18, Nandurkar said that there were several factors staking up in favour of Emerging Markets.

However, he believes that the market valuation is very high. “PE multiples cannot be looked at on a standalone basis. They are high for most of the stocks. For Nifty as a whole, we are looking at almost like 22 times one-year forward earnings,” he said.

He is of the view that the global central banks taking liquidity away would be a risk for the markets going ahead. Nandurkar also said that money printing raised a question on strength of currencies of developed markets.

On the domestic side, he believes that the Reserve Bank of India (RBI) will allow the currency to appreciate to ward off inflationary pressures.

Nandurkar is bullish on the real estate sector and believes that the revival in the sector will have wider implications for the portfolio.

“Revival in the real estate will be positive for banks and other cyclicals. Building materials, tiles, cement will be beneficiaries of realty pick up,” he said.

For entire conversation, watch video...

(Edited by : Ankit Gohel)