FPI flows will get better only in medium to long term: Kotak AMC president

Looking from a medium-to-long term perspective, India is well positioned to deliver growth, both from the economy and equity market point of view

Despite earnings of Nifty50 firms growing on expected lines at 12 per cent in the third quarter, the broader market saw weaker profitability due to disappointment from mid-cap and small-cap companies, said Harsha Upadhyaya, president and chief investment officer - equity, Kotak Mahindra Asset Management Company. In an interview with Abhishek Kumar, Upadhyaya recommends that investors maintain a portfolio tilt towards large-cap stocks. Edited excerpts:

How would you describe the current market situation?

Valuations are in the fair range, assuming that earnings over the next year will be in line with expectations. However, on a relative basis, they are higher