Indian market scaled fresh peak on Wednesday but that doesn’t bother top foreign institutional investors (FIIs) such as Jeff Chowdhry who is a senior portfolio manager at LGM Investments said we remain incremental buyers in Indian markets.

Commenting on specific stocks, Chowdhry said we like consumer stocks like ITC, Emami. In the private sector banks, we like HDFC Bank as well as Yes Bank which continue to be our long term favourites despite sharp run-up in the markets.

Higher valuation for Indian market does not particularly trouble him. “If we look around the world as to what is available in emerging markets or developed markets, you would be happy to put incremental money into India,” he said.

“We are always happy when markets go to all-time highs and particularly happy because India is our biggest allocation in the emerging market funds (EMs). We have almost 30 percent of the global emerging market fund in India,” said Chowdhry.

Although, FIIs have been pulling out money from Indian markets so far in the month of April, but that does not impact the investment argument. Foreign institutional investors sold nearly Rs 5000 crore in Indian equity markets so far in the month of April.

Commenting on earnings, Chowdhry said that earnings are tenuous in the short-term in terms of linkage with the stock market. “But, for us, we like cash flows and how the company is able to grow the cashflows and the return on capital employed,” he said.