Earnings growth will decide the pace of market recovery: Rajat Rajgarhia

'Now valuations have become more reasonable and trade at long-term averages. More importantly, there are palpable signs of peak inflation behind us'

It has mostly been a one-way street for global financial markets the past few months as central banks started hiking rates to restrain runaway inflation. Rajat Rajgarhia, managing director and chief executive officer for institutional equities at Motilal Oswal Financial Services, in conversation with Puneet Wadhwa, says his discussions with global investors indicate they have a positive view on India from a medium- to long-term horizon. Once volatility subsides, he expects foreign institutional investor (FII) flows to turn positive. Edited excerpts:

Do you think the worst of FII selling and commodity price spike – and consequently market correction – is