New Delhi, Aug. 25 -- Indian markets today are like a compressed spring and "once uncertainties like tariffs clear, we could see a sharp rally", according to the investment head of Bajaj Finserv Asset Management Co (AMC).

A lot of money shifted to the US last year on tariff worries, with emerging markets, including India, losing flows; and slower earnings and GDP growth exaggerated the move, said Nimesh Chandan, chief investment officer at Bajaj Finserv AMC, which manages equity assets worth Rs.27,700 crore as of July.

Chandan said that as uncertainties ease, India isn't much hit by tariffs, and domestic demand measures are kicking in. "That sets the stage for money to return."

Edited excerpts:

When we framed our investment philosophy...