As China's reopening euphoria fizzled out, India saw strong FPI flows

What is fuelling the strong overseas flows and fundamental factors supporting the market at the current levels? Kunal Vora, head, India equity research, BNP Paribas explains

The Indian markets have seen a sharp rebound from this year’s lows in March but valuations have still not been in the very expensive territory, says Kunal Vora, head, India equity research, BNP Paribas. In an interview with Sundar Sethuraman, he explains what is fuelling the strong overseas flows and fundamental factors supporting the market at the current levels. Edited excerpts:

Domestic equities are witnessing huge foreign portfolio investor (FPI) flows. What’s driving these inflows?

In March 2023, we changed our view on the markets from being cautious to positive. Our rationale was that the market had seen price and