In an interview, Harendra Kumar (managing director at Elara Capital) expressed concern over the steady outflow of foreign capital from Indian stock markets, attributing it to underlying economic issues and policy frameworks. He noted that while the worst may be behind us, cutting Sensex and Nifty targets prematurely is unwise. Kumar highlighted that inflation has risen globally, impacting capital flows and altering market dynamics. He pointed out that sectors like metals and energy are likely to thrive in this inflationary environment. Retail investors are showing resilience, with systematic investment plan (SIP) inflows reaching record highs, indicating a shift in investment behavior. Kumar emphasized the need for India to implement significant reforms to attract foreign direct and portfolio investment, crucial for achieving its growth ambitions. He believes that without these inflows, sustaining higher growth rates will be challenging. Overall, he remains optimistic about the market's potential for positive returns, provided investors navigate the volatility effectively.