New Delhi, Aug. 11 -- India's equity market has not yet fully priced in the impact of the 50% tariff announcement by the US, and is holding its nerves on hope of an agreement, says Alok Singh, chief investment officer at Bank of India Mutual Fund.

In an interview with Mint, Singh warns that the country's failure to reach a "reasonable" agreement with the US in the next few months could lead to a de-rating of the export-heavy sectors that cater to the world's largest economy.

On the big picture, he says India may continue to see elevated valuations in Indian equities for some more time, with a gradual correction likely only if earnings growth falters for a sustained period.

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Markets haven't been doing well primarily bec...