01-09-2024 09:55 AM | Source: Dezerv
Quote on FPI by Vaibhav Porwal, Co-founder, Dezerv

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

 

"Valuations in the Indian equity market have risen to relatively high levels, leading FIIs to exercise caution when investing in India. They have been selectively investing in defensive market segments, focusing on sectors such as healthcare and FMCG.

On the debt market front, the strong buying trend among FIIs can be traced back to India’s addition to JP Morgan’s Emerging Market government bond indices earlier this June.

Outlook: The US Fed is expected to start its rate cut cycle in September. Historically, rate cut cycles in the US market have not been favorable for their equity markets. We anticipate that FIIs will shift their focus to emerging markets, deploying capital where valuations are more appealing. However, India may not be a significant beneficiary of these flows."

 

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