The valuations of the Indian benchmark index Nifty seems to be expensive after the recent outperformance as compared to emerging markets, says Pratik Gupta of Kotak Securities. He remains cautious on the Indian market at current levels and believes US Federal Reserve’s bond tapering will be the biggest risk to global equity markets.The risk-reward is turning favourable for investors with a shorter time duration, he said. In the IT space, he prefers large-cap IT stocks as against midcap IT stocks. “Easy money has been made in it over the short term,” he said.Gupta believes the Indian telco market is heading towards a duopoly after no relief in AGR payments. On the banking sector, he said it appears reasonably valued after the recent underperformance.“I believe worst of asset quality issues are behind for Indian banks. I expect a decline in credit costs for banks in FY22, while credit growth to bounce back in FY23,” he said.He is of the view that stocks like Zomato cannot be invested into with a shorter-term duration.For the full interview, watch the accompanying video.