New Delhi, Jan. 26 -- After two record years of fundraising, investor appetite for new listings could moderate, as abundant supply and external headwinds weigh on secondary markets.

While declining to comment on possible budget measures, Anthony Heredia, managing director and chief executive officer of Mahindra Manulife Mutual Fund, said that policy measures aimed at boosting foreign capital flows, either directly through tax incentives or indirectly, could help create economic momentum. After underperforming global peers for a year amid high valuations and low earnings growth, India's relative valuations are beginning to turn attractive in dollar terms, he said in an interview. Edited excerpts:

It is still early days in terms of evalua...