Mark Matthews on why some long-term India bears are now turning bullish

Mark Matthews of Bank Julius Baer & Co says India’s stock market could see a recovery despite global volatility and foreign outflows. Valuations have cooled, making the market more attractive, while mid and small caps show resilience due to strong domestic participation. A potential decline in oil prices and stabilisation in the rupee could support sentiment. He also believes FPI flows may return as India’s fundamentals remain intact. Matthews said crude oil prices are likely to ease, with his firm expecting them to fall to the high $60s over the next three months from current levels.