Inflation, valuations are concerns: Merrill Lynch

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Getting into a new week of trade, Michael Hartnett, Global EM Equity Strategist at Merrill Lynch says that liquidity is still good, and there are new investors from West Asia and Japan.

He is concerned about domestic inflation and valuations, and as a result says that funds are not too overweight on India right now.

However, being underweight on India, he is still positive on emerging markets.

As he feels that the bull market in Indian equities is not over, he is positive about plays like infrastructure, cement, engineering and software stocks.