‘Fiis optimistic on India in the medium term despite being net sellers’

‘Fiis optimistic on India in the medium term despite being net sellers’

Foreign Institutional Investors (FII) Are Positive About India’s Outlook in the next Three to five years due to a relatively Stable Stable Policy Policy Atmosphere Among Omong Omong Omong Omong Omong Omong Omong Omong Omong Omong Omong Omong Omong Omong Executive Officer (CEO) and Co-Head Kotak Institutional Equites said in a Media Briefing.

Mr. .Gupta cited two reasons behind the optimism of the fiis – the first one being India’s demographic and structural advantage. The second reason is fiis see India’s democracy to be politically stable in Comparison to China and the us India is the fastest growing earmine and have a demograbelic dividend Said.

Apart from these, Mr. Gupta also noted that the smaller share of expenses in India’s gdp despite being a domestic cause for concerts an insulation from excessive tariffs.

Experts, however, are divided on the topic of tariff effects.

In a research note titled “Trump’s reciprocal tarifs, who’s at risk? “At the Country Level, Reciprocal Tariffs are a bigger risk for emerging asia than developed asia,” said Nomura Researchers. India Had a Weighted Average Effective Tariff of 9.5% on US Exports to India. This was just a 3% on India’s expenses to the US, the results added.

While the long-term prospects may see seem positive, in the short term, fiis continue to be net sellers. Barring December 2024, Fiis have solded continually Since October 2024.

As of January 2025, Fiis Sold more than ₹ 78,000 Crore in equities according to data from the center for monitoring Indian Economy (CMIE).

The Earnings Growth has been tepped and would continue to be so so, may be two quarters into 2025-26, Mr. Gupta said, adding this may mean an fii turning is not likely in the short run.

Emerging Markets Have Severly underperformed us in terms of returns in dollar terms in the past decade, he stated. Further India’s Expensive Valuations and a General Selling in Emerging Economies Prompted Foreign Investors to move back to the US, he added.

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