HSBC Mutual Fund Says Foreign Investor Return to India Remains Tactical
· Business · Economic Times, Times of India
Foreign portfolio investors are returning to Indian equities, but the current buying trend does not yet represent a durable structural reallocation. Venugopal Manghat, chief investment officer for equity at HSBC Mutual Fund, stated that inflows remain dependent on global liquidity, interest rate expectations, and currency stability. While India’s valuation premium has moderated from 2024 peaks, sustained investment requires consistent earnings delivery. Manghat noted that the earnings cycle has improved, with Nifty profit growth accelerating and FY27–28 earnings projected to grow in the mid-teens. The market recovery is currently supported by diverse sectors including autos, financials, metals, pharma, and consumer businesses.
Why it matters
The distinction between tactical and structural inflows helps investors understand whether current market momentum is based on long-term confidence or short-term global liquidity shifts.
Read the original report — Economic Times
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