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Below the Quote on FPI By Vaibhav Porwal, Co-founder, Dezerv

"FIIs were net buyers in July in the cash market. Post budget, we saw some selling sprees.

Weaker than expected employment data along with a slowing economy has made it certain that the US Fed is expected to cut rates in September. The more important question here is the extent of the cut. Currently there is strong commentary getting built for maybe a 50 bps cut in interest rates.

FII flows into India should increase due to several factors. Firstly, India's economy is performing better than many global peers, making it an attractive destination for investors. Secondly, with the risk-free rate expected to come down in the USA, investors will likely seek better returns elsewhere, including India. Thirdly, the government's robust fiscal discipline could lead to a rating upgrade for India, enhancing its investment appeal. Additionally, valuations of large-cap stocks, where FIIs typically invest, are currently at reasonable levels. Lastly, uncertainties like elections and budget announcements are behind us, providing a more stable investment environment."

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