New Delhi, Sept. 8 -- Rising geopolitical tensions and other global risk-off events can induce large corrections in the stock markets, but the rising cult of domestic equity investing, evident through pension, insurance and mutual funds, is absorbing foreign portfolio investor outflows and resulting in quick and sharp recoveries from the lows, according to Subhasis Ghosh, chief executive officer at Kotak Mahindra Pension Fund.

Ghosh expects earnings growth improvement from the second half of the current fiscal as the impact of policy rate cuts and GST rationalization works its way through the economy.

Edited excerpts:

The GST move should be seen as a more structural realignment of rates. Apart from the near-term sentiment boost, we exp...