Even as we come to the fag end of Financial Year 17-18 amid heightened volatility in the stock markets, Sridhar Sivaram of Enam Holdings says that the second half of the year will be more volatile and returns will be lower. In an interview to CNBC TV18, Sridhar Sivaram, Investment Director at Enam Holdings said, \u201c FY18 has been a tough year, we don\u2019t expect too much return this year. We are already underperforming the EM peers by about 10%.\u201d According to the expert, the stock markets could face various headwinds due to implementation of e-way bills from April 1st and the political situation in the country. Further, Sridhar Sivaram said that the macros have deteriorated. \u201cIndia\u2019s macro has significantly deteriorated. If we go back three years, we are seeing inflation inching up even though it is still within the RBI band. We are seeing the CAD moving up. The RBI interest rate hike looms large. The sweet spot we were in the last three years has moved away,\u201d he said. However Sridhar Sivaram noted that India\u2019s bull markets have come when India\u2019s macros haven\u2019t been great. Sharing his views on the stock market valuations, Sridhar Sivaram said that a healthy correction which was required. \u201c We are back to Nifty at 10,000 which we hit in July-17. Eight months of market move is gone. We have patchy earnings. Many news flows which are not great for the stock markets. It\u2019s a reminder for people that it\u2019s not a one-way street,\u201d he said noting that \u00a0irrational exuberance in certain pockets seems to have gone away. Speaking about the prospects of India\u2019s PSU banks in light of the NPA cleanup, Sivaram observed that the PSU lack of market share will also accelerates from here. \u201cThe LCs and other forms of exports credit has significantly come down,\u201d he said.