See limited downside for markets from current levels, says Kunal Vora

Despite weak high-frequency data, Vora says tax cuts, strong domestic flows, and easing valuations support markets, with Nifty earnings less vulnerable to US tariffs

Markets have taken recent policy-related and geopolitical developments in stride. Kunal Vora, head of India equity research at BNP Paribas Bank, tells Puneet Wadhwa in an email interview that while Nifty 50 earnings are not highly sensitive to US tariffs, a resolution would improve investor confidence, particularly among foreign investors. Edited excerpts:

 

Is the risk/reward favourable for stock market investors at current levels?

 

The risk/reward looks favourable to us. Indian markets have gone through a consolidation phase, with the Nifty 50 largely flat over the past year, underperforming other emerging markets (EMs). This underperformance can largely be attributed to earnings