Mumbai, July 6 -- Mumbai: A slow-growth environment is the main trigger for the underperformance of Indian markets and foreign outflows, said R. Sivakumar, chief investment officer at Axis Asset Management Co. Ltd (Axis AMC), adding that a rainfall deficit is a legitimate risk but is unlikely to trigger runaway food inflation.

The primary threat of a poor monsoon is a decline in agricultural output, which impacts the macroeconomy by reducing rural incomes and dampening consumer spending power rather than generating a systemic inflationary spiral, he explained in an interview with Mint. Edited excerpts:

The transition will see the investment philosophy remain substantially the same. Having been with Axis since 2009 and deeply involved in...