Bernstein: FIIs Unlikely to Return to Indian Equities Without New Growth Engines
· Business · Economic Times
Foreign Institutional Investors are expected to remain cautious about Indian equities over the coming year, with significant foreign investment depending on India's ability to build globally competitive industries. Bernstein stated in a report that foreign investors are unlikely to return in large numbers even after the artificial intelligence trade peaks. A sustained revival in foreign inflows relies on advancements in sectors such as advanced semiconductor manufacturing, batteries and energy storage, and energy self-sufficiency. Bernstein expects foreign institutional investor flows to remain flat to modestly positive over the next 12 months, reflecting the easing of recent headwinds rather than long-term improvements. FIIs have withdrawn USD 40 billion from Indian equities over the last two years, recording combined outflows of USD 56.3 billion over the past 24 months.
Why it matters
The cautious outlook from foreign investors directly affects Indian equity markets, capital allocation, and the valuation of domestic companies seeking sustained liquidity.
Read the original report — Economic Times
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.