New Delhi, June 8 -- Corporate margins could face a squeeze over the next few quarters as input cost pressures from the West Asia conflict filter through. This is causing a recalibration of earnings expectations for the current fiscal , according to Avinash Satwalekar, president of Franklin Templeton - India. However, he noted that recent selling by foreign portfolio investors (FPIs) has lowered India's premium valuation, improving the medium-term risk-reward ratio for investors.

Satwalekar, who oversees a business with over Rs.1.23 trillion in assets under management, expects global capital to return once macro headwinds stabilise as India's structural growth story remains intact.

Here are some excerpts from the interview.

Before the ...