Heavy liquidity driving mid-, small-caps: MD, Motilal Oswal Inst Equities

In a Q&A, Rajat Rajgarhia says high growth environment and peaking of interest rates create a fertile ground for equities

Despite the sharp up move from this year’s lows, the Indian markets are still trading at close to their long-term valuations and there is a case for a further re-rating, says Rajat Rajgarhia, MD & CEO, Motilal Oswal Institutional Equities. In an interview with Sundar Sethuraman, Rajgarhia says high growth environment and peaking of interest rates create a fertile ground for equities. Edited excerpts:

Inflows from foreign portfolio investors (FPIs) into domestic equities have topped Rs 1 trillion so far in calendar 2023. What is the trigger for such large flows?

The past few months have seen huge buying from