New Delhi, Aug. 3 -- Companies have retained volumes despite taking price hikes, signalling resilient demand, while strong domestic flows and improving foreign investor sentiment leave little reason for a sharp market sell-off, according to Nitin Bhasin, head of Institutional Equities at Ambit.

In an interview with Mint, Bhasin also said banks have become more attractively valued after the correction and global investors are turning more constructive on India, helped by resilient earnings and excitement around upcoming large IPOs.

Edited excerpts:

The situation remains highly uncertain. There is conflicting information about whether a truce is holding or not, so it is difficult to draw firm conclusions.

If this uncertainty persists, i...