IGI Logo

Below the Quote on FPI by Vipul Bhowar, Senior Director - Listed Investments, Waterfield Advisors

Recent shifts in global policies, especially those emerging from the U.S., are invoking a sense of uncertainty among Foreign Institutional Investors (FIIs), which in turn is reshaping their investment strategies in dynamic markets like India.

The allure of U.S. assets has intensified, driven by rising bond yields that have made these investments seem more secure. This has led many FIIs to pivot away from Indian and other emerging market stocks. Investors are increasingly drawn to the promise of safer returns offered by U.S. equities, leaving many markets, including India, in their shadow.

Compounding this trend is a noticeable slowdown in corporate sales growth within India, further fueling the exodus of capital from Indian equities. This deceleration casts a long shadow over the enthusiasm for stocks, prompting a wave of sustained selling.

Additionally, the prevailing high valuations in the Indian stock market have added to the caution among investors. With prices soaring, many are reassessing their positions, reluctant to dive into a market that appears overheated and potentially risky. This combination of factors creates a complex landscape where the once-vibrant interest in Indian equities is now laced with hesitation and caution."

Above views are of the author and not of the website kindly read disclaimer