Investors trying to time Indian equities by tracking foreign fund flows are effectively betting on “mood swings”, according to Anish Tawakley, chief investment officer at DSP Mutual Fund, who says earnings, and not liquidity, should drive portfolio decisions.
With Nifty earnings growth muted in FY25 and FY26, Tawakley expects reasonable, earnings-led returns over the next 12–18 months. He sees the risk-reward favouring largecaps and remains positive on banks, while cautioning investors against chasing popular themes and remaining cautious on listed IT companies. Edited excerpts from a chat:
