Indian stock market: Foreign investors looking for meaningful correction to invest – Kotak Equities

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NSE is now India's second-largest commodity platform… with an asterisk Gupta observes that numerous Foreign Institutional Investors (FIIs) are presently monitoring valuations diligently, conducting thorough research, and strategically investing during significant market corrections. He highlights that FIIs currently harbor a notably optimistic long-term perspective on India's market trajectory, expressing confidence in its resilience.

This marks a departure from previous perceptions among FIIs, which often categorized India as a cyclical market, with performance fluctuating between strong and weak years. Now, there's a distinct shift, indicating a broader recognition of India's sustained growth potential and stability, fostering increased investor trust and commitment.

One of the major reasons behind renewed interest of foreign investors in India is its inclusion in the MSCI Index. However, the rising interest is not necessarily coming at the expense of China, Gupta added.

He further highlighted that a few were getting strong inflows from Japan where the sharp currency depreciation has helped exaggerate returns from India. However, many global investors expressed hopes that a likely Fed rate cycle later this year would trigger more inflows into EM funds or even India-dedicated funds, and most were expecting China to remain range-bound this year.

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