Harendra Kumar, Managing Director at Elara Capital, shared insights on the Indian equity market, stating that the Nifty index is currently in a 'bounce zone,' trading at 17.3x, which is 7% below its 10-year average of 18.6x. This level historically acts as a strong support for the market. Despite significant foreign institutional investor (FII) outflows totaling $19.7 billion, Kumar noted that India's macroeconomic fundamentals remain resilient. He anticipates that a swift de-escalation of geopolitical tensions could trigger a market recovery in FY27. Kumar highlighted that sectors such as large-cap auto stocks and utilities have shown resilience, with 18 out of 19 utility stocks outperforming the Nifty 50 during recent market drawdowns. Additionally, he pointed out that valuations in sectors like IT services, banks, and real estate are currently attractive, trading at discounts to historical averages. Although India continues to trade at a premium compared to its peers, this premium has normalized, reflecting stronger growth visibility and macro stability. Kumar believes that FII flows may improve in FY27, contingent on stable energy prices and continued earnings strength.