Stock market is a slave of earnings: Saurabh Nanavati, Religare Invesco AMC

Saurabh Nanavati, Managing Director, Religare Invesco AMC, expects DII flows to revive going forward. Excerpts from an interview:

How serious are the concerns of domestic institutional investors’ (DII) flows slowing down?

The DIIs flows have seen slowdown over the past two months, but we are hopeful that flows will revive going forward. I would say equity as an asset class continues to remain attractive compared to real estate and gold. The flows have turned volatile over the past two months, but I am not very concerned at this point of time as money is bound to chase stocks.

How do you see global macro events unfolding, and to what extent will India get impacted?

All global macro concerns are real and India is interconnected with world markets. It’s not possible that if some big global event happens India will remain unaffected, but one has to remember that the stock market is a slave of earnings and if corporate earnings turnaround, Indian markets will start rallying again.