Reasonable to expect positive FPI flows will continue: Abhiram Eleswarapu

"It is encouraging to see nearly $5 billion of FPI inflows this month into India after a long period of sustained outflows", he said

The market rally in the past two months has made valuations expensive. As a result, any new data that points to sticky inflation or sharply falling growth could hurt equities, says Abhiram Eleswarapu, head of India equities, BNP Paribas. He told Sundar Sethuraman, in an interview he would prefer to be defensively positioned and opt for cash-rich and dividend-paying companies. Edited excerpts:

What do you think has propelled the market off June lows?

The market narrative has changed from one of rising inflation to peaking inflation. Fears of an imminent developed markets recession have receded, and investor expectations of a