New Delhi, June 15 -- There has been a sharp change in market sentiment, from soaring optimism two years ago to severe pessimism now, driving foreign investors to pull money out of Indian stocks, said Vinay Paharia, chief investment officer (CIO), PGIM India Mutual Fund.

However, this negative sentiment has made Indian stocks, especially large-cap companies, look more attractive, he said in an interview with Mint.

"As a result, India has reversed course to become an attractive country based on relative valuations compared to other emerging markets, with valuations now looking attractive especially in the large-cap space,"

In response to the West Asia crisis and recent market learnings, PGIM Mutual Fund has increased exposure to high-qu...