Daniel Morris, chief market strategist at BNP Paribas Asset Management, talks about Indian markets, US tech stocks, and why he is bullish on US dollar and gold in an interview with Prashant Mahesh. Edited excerpts: Foreign investors have been sellers in India over the last 45 days. What could make them come back?Investors are concerned primarily about high valuations in India. While underlying corporate earnings have moved up, stock prices have moved up even faster. So either the Indian markets could see a correction, or an increase in earnings, which in turn will bring down the price-to-earnings (PE) ratio, which is one of the key triggers we would be looking for in India.Do you think there is scope for the Fed to cut rates further?Before the election, you had a soft landing scenario where we believe growth slows, inflation falls and the Fed cuts rates. Now that may not happen right away, but will happen in the distant future. In the mean time, you have no landing scenario, a situation where the US economy keeps growing, inflation stays elevated and rates are at risk of going in another direction. So even though this is not a base case, we need to acknowledge it's a greater risk. So, there is less scope for additional rate cuts.Where do you see the US dollar heading now? Will it continue to strengthen?During Trump I, the dollar rose, and it also tends to when the Fed is cutting rates. Comparatively, high US growth and relatively high US interest rates both argue for a stronger US dollar compared to most other currencies.What is your outlook for gold?We continue to be overweight. We feel geopolitical risks are quite elevated, which acts as a structural support for gold. Higher inflation in the US would also act as a support for gold. Some central banks are likely to diversify outside the US treasury which is again supportive of gold.US markets have had a good run this year. How will you approach the US with Donald Trump set to take charge?We are overweight on US equities. During the first Trump administration, US equities outperformed; and when the Fed is cutting rates, US equities also tend to outperform. The fundamental drivers are fiscal stimulus, deregulation and increased M&A activity supporting an increase in corporate profits. Modest tariffs could support greater domestic demand, though this may be offset by higher import costs and lower exports. Within US equities, we are overweight the Nasdaq as the earnings growth for these companies is going to be higher than before. Given the strong earnings growth, valuations of the Nasdaq are not worrying.