ETMarkets Fund Manager Talk: Don’t see any reversal in FII inflows into equities in the near term: Bharti AXA Life

economictimes.indiatimes.com:

After a high amount of dollar inflows into Indian equities since March, foreign portfolio investors slowed down their purchases in August. However, the trend is unlikely to reverse anytime soon, says Rahul Bhuskute, chief investment officer, Bharti AXA Life Insurance. India’s resilient economy, its strong investments driven growth, and robust corporate profitability has attracted much of the fund allocations made by Emerging Market funds, he said.
“While the pace of incremental investments by FIIs has slowed down, we definitely do not see a reversal of flows any time soon, with investors confident about the long-term potential of the Indian markets,” Bhuskute said in an interview with ETMarkets. Edited excerpts:


Inflation and rate hike concerns are making a comeback both on the domestic and global fronts. Is this likely to dampen the Indian market momentum in the near term?The equity market has been willing to look through near term inflation concerns and consider them temporary, while the overall growth conditions remain buoyant and corporate earnings are robust.

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But continued higher inflation might pose challenge to specific sectors such as consumption and its effect on margins of companies will need to be seen as after the current rally, the market is positioned for any significant disappointments.

After 5 months of relentless buying, FIIs seem to have taken the slow lane. Is this likely to become a party spoiler for Dalal Street?India’s resilient economy, its strong