New Delhi, March 13 -- Global markets are entering a historic shift in power dynamics as the US and China reshape geopolitical and economic order, according to Swarup Mohanty, vice chairman and chief executive at Mirae Asset Investment Managers (India).

With these two giants in play and changes around key forces like the dollar and oil, market sentiment is bound to shift, Mohanty told Mint in an interview.

Markets cannot be sustained on liquidity alone, he said. Earnings must support valuations. Once earnings recover, currency stabilizes and valuations improve, the conditions for foreign investor flows start aligning, said Monhanty, whose fund house manages assets worth Rs.2 trillion. Edited excerpts:

You have earlier said there are ma...