Inderjeet Bhatia, head of research at Macquarie, spoke to CNBC-TV18 about the ongoing slump in crude oil prices and earnings growth.
"At the margin it looks like investors have started to become more constructive on India, especially foreign investors," Bhatia said on the sidelines of their conference.
"Weakness in crude oil prices have also helped strengthen India’s case further," he said.
"Market correcting to more reasonable valuations has also made investors look constructively towards market. However, the market is not yet in the value zone," he added.
On the earnings front, he said, "Second quarter has been broadly in-line with expectation, with no fireworks on either side. Market was hoping for positive surprises but those did not come through.We cannot have year after year same story play out where you cut earnings and push growth to next year."
Sector specific, he said, "The house has always been upbeat on corporate banks with ICICI Bank being their top pick. The entire IBC process is starting to make clear headway in some big ticket NPA issues that we have."
With regards to the NBFCs, Bhatia said, "Although the valuations have corrected to reasonable levels but one has to see when the dust settles down, will there be stricter regulations on them, and that will decide where valuations settle for them. So, would prefer to wait before taking a call on them."