New Delhi, Feb. 17 -- As global markets navigate uncertainty, factors that could drive foreign capital into India would be the stability of the dollar, transparency on tariffs and trade barriers, and a strengthening earnings outlook, according to the investment head of Edelweiss Mutual Fund.

Earnings have seen a 10% downgrade for FY25, affecting large-, mid-, and small-caps alike, said Trideep Bhattacharya, president and chief investment officer-equities at Edelweiss Asset Management Company Ltd, which oversees equity assets totalling nearly Rs.23,000 crore.

This broad-based reduction suggests a gradual recovery, rather than an immediate rebound, he said, adding, "We anticipate earnings growth to pick up in the second half of FY26 (2HFY...