India’s Rally Led by Foreign Inflows, Says BNP Paribas’s Eleswarapu

The video discusses the recent rally in Indian stocks, primarily driven by foreign inflows due to accommodative monetary policies in the US and Europe. It highlights the current overvaluation of Indian stocks compared to historical levels and peer markets. The video also explores divergences in the market, noting that only a few stocks are driving the index while others remain undervalued. Future predictions suggest a potential pause in inflows or a slower pace, with opportunities in individual stocks rather than the index as a whole.

What are the two kinds of divergences mentioned in the Indian market?

What potential outcomes does the speaker foresee for the index and individual stocks?