MUMBAI, May 6 -- For India, the fallout from West Asia conflict, while negative for the macro-economy, would remain manageable if a final peace deal is reached by mid-May.

Any extension beyond that could push up oil price expectations and have a more severe impact, not just on the macro, but also on earnings for the current fiscal, which are otherwise expected to hold up better than the economy in the context of the war, according to Sanjeev Prasad, managing director and co-head, Kotak Institutional Equities.

In an interview to Mint, he also explained why foreign investors continue to pull out despite valuations correcting.

Edited excerpts:

It is a little bit of a challenge as of now. The hope was that the West Asia war would end by e...