A sharp decline in crude oil prices, improving earnings visibility and signs that foreign institutional investor (FII) selling may be losing steam have significantly improved the outlook for Indian equities, according to Kunal Vora from BNP Paribas India . While near-term earnings may reflect the temporary disruptions caused by higher commodity prices and currency movements, he believes the broader market setup has become considerably stronger over the past few weeks.
Speaking to ET Now, Vora said investors should focus less on whether foreign money returns aggressively and more on whether the intense selling pressure witnessed in recent months begins to ease. In his view, domestic institutional flows remain strong enough to support the market as long as earnings continue to grow.
