New Delhi, Nov. 30 -- India's market valuations were at a 100% premium to emerging markets in September last year making it an expensive proposition. Now that the valuations have come back to a 60% premium, we may see foreign institutional investors (FIIs) coming back, said Vipul Bhowar, senior director, head of equities at Mumbai-based wealth management company Waterfield Advisors.

Talking about promoters diluting stakes at a high valuation, Bhowar said that in itself is not a problem as they should be rewarded for their hardships. It becomes a problem only when the promoter is moving out of the company and not having a control in the company after dilution, he said.

Edited excerpts from an interview:

The market will trend higher from...