New Delhi, Oct. 27 -- Historically, global investors loved India for structural growth and a deep pool of high-quality businesses. Now, there are steady domestic flows. This reduces volatility, improves risk-adjusted returns, and makes India less vulnerable to global sentiment, said Navneet Munot, managing director and chief executive officer at HDFC Asset Management Co. "Earlier, if global markets sneezed, India caught a fever; now it is different."

There aren't extreme pockets of froth on one side and a deep value on the other, he said in an interview. "Now, returns will largely depend on earnings growth."

There was consolidation over the last year with earnings growth coming below expectations, but recent policy measures should reviv...