Markets would remain volatile: Vijai Mantri

In a chat with ET Now, Vijai Mantri, MD & CEO, Pramerica Mutual Fund, shares his views on the market. Excerpts:

ET Now: We have seen lot of volatility of late first 10 days ago things were looking good, then we saw some degree of correction and after that correction things are once again looking stable so how would you map the market environment?

Vijai Mantri: In our opinion the market would remain volatile and the Nifty would hover from 5500 to 6500. The market will continue to move in that range so it is not surprising at all. Whenever the market goes up domestic investor comes to sell so they do not allow the market to have one way and whenever the market falls we also see smart money moving in the market so in a way it is nicely poised. If you look at the valuation of the market they are available at a little discount to the long term PE multiple of the market. So, the market would track the earning growth of the company. You have seen most of the Q3 numbers are on positive and certain side you have negative which was on expected line. So for the good company earning has bottomed out and the market would track the earning growth but the most important factor which will drive the portfolio return of the customer is the part of the economy where you are going to see PE expansion.