"You would expect to find a flow of money into emerging markets again in Jan-Feb, which should probably take this market higher."

"It is still a flowing market and I am not fundamentally bearish because most of the negatives have already factored-in," Tarun Kataria sai...

You cannot build an economy based on subsidies through the whole period. You have to get to a point where you are creating jobs and income.

"PSU banks are being very cautious because their balance sheets are not in the best shape. So you have got a bit of a circle."

"We have a call of 10-12-15% upside on both the indices for the year driven again largely by global liquidity," says Tarun Kataria.

There is no major event risk that can come out of Europe and the fiscal cliff in US would get sorted, says Tarun Kataria, Religare Capital.

"It is a serious enough issue for US GDP i.e. some commentators have said 4% or 5% decline in GDP, which is running at 1.5% today".

"My advice to everybody is to have a balanced portfolio. Do not forget about compounding, because the only way you make money in investing ...

There is a slight amount of optimism at the moment, but things need to play out pretty quickly to provide a catalyst for the market.

Tarun Kataria, CEO, Religare Capital Markets India, talks about Indian markets and the crucial sectors. Excerpts: