Abhijit Chakraborty of Edelweiss believes the developments in the US are very positive. Also the RBI policy has taken people by surprise. So confidence and sentiment seem to have improved and markets can move up another 5-6% from here, he said.

Excerpts from CNBC-TV18's exclusive interview with Abhijit Chakraborty:

Q: What have you made of the global developments over the past few days and what do you think we are playing for now, more strength?

A: The developments in the US have been very positive. Even locally, the RBI policy has taken people by surprise, given the fact that they have tried to keep an eye on growth while trying to control inflation. Confidence and sentiment has definitely improved over the last couple of weeks, after the US data also. We will definitely see a pick up of this rally to gain further momentum and it can move up another 5-6% from here.

Q: What have you made of the earnings' season from the number’s that you have seen so far this month? How do you think the markets will come out and take this earnings season?

 A: Earnings, more or less, have been on expected lines. Barring one or two major disappointments, the earnings estimate for this quarter were as it is lower than the previous two quarters. We have seen about 18% to 20% growth in earnings in this quarter for whatever results have been come out.  This has been more or less in line with what the estimates have been. The risk remains for earnings going forward too. The kind of measures the government has been taking in curbing inflation, there have been price curbs put on various industries and at the same time the interest costs are still high and so are the raw material costs. So going forward, you will see margin pressure, maybe a slower execution of the capex program. So all this could have an impact, but having said that, even if you factor in all the negatives, we will still see at least 15% to 16% growth in Nifty, or in Sensex stocks and therefore, I don’t think that the market will take a lot of negative cues from here,. Things can only improve and there will be pockets and certain sectors which could see a slowdown or a cut in earnings, but the market always gives an opportunity to identify stocks which are available at very decent valuations.