Expert View, May 21 -- India's equity markets are navigating one of their most complex macro phases in recent years. Sustained foreign investor outflows, a record-low rupee, and elevated crude oil prices have together triggered a meaningful reset in valuations across sectors. While large-cap valuations have moderated closer to historical averages, pressure on earnings expectations and liquidity remains elevated, particularly in parts of the mid- and small-cap universe. At the same time, rising domestic institutional participation is reshaping the ownership structure of Indian markets and providing an important cushion against external volatility.

In an interview with Mint, Siddhartha Khemka - Head of Research, Wealth Management, Motilal ...