Equity market slave to earnings, not flows: Vetri Subramanian

Sustained buying by MFs has provided a counterbalance to FPI selling, cushioning the market fall. While the record inflows at equity MFs have reduced the vulnerability of Indian equities to overseas hot money, it has created a problem of plenty as valuations remain lofty and earnings growth has failed to catch up. That hasn’t dampened the optimism of domestic fund managers, who remain bullish about India’s long-term growth prospects. They single out equities as the preferred asset class. Here are the views of top four fund managers on the opportunities and the weak spots for the markets. Edited excerpts: