Foreign institutional investors are unlikely to return to Indian equities in large numbers over the next year unless the country can demonstrate fresh, scalable growth engines, according to Bernstein. The note points to a market that remains structurally attractive but no longer offers the same relative earnings or valuation edge that once drew global capital in force.
The report says foreign flows are being reshaped by currency moves, sector competitiveness and shifting global allocation patterns, even as India makes early progress in areas such as semiconductors and deep-tech. But those industries remain too underdeveloped to alter the near-term investment case, leaving FIIs selective and cautious.
Foreign institutional investors are unlikely to return to Indian equities in large numbers over the next year unless the country can demonstrate fresh, scalable growth engines, according to Bernstein. The note points to a market that remains structurally attractive but no longer offers the same relative earnings or valuation edge that once drew global capital in force.
The report says foreign flows are being reshaped by currency moves, sector competitiveness and shifting global allocation patterns, even as India makes early progress in areas such as semiconductors and deep-tech. But those industries remain too underdeveloped to alter the near-term investment case, leaving FIIs selective and cautious.
Editorial & Verification Notice
Reported by RDU Global Correspondent. Formatted and verified using real-time institutional and journalistic wire feeds. Independent reporting adhering to the RDU Global Editorial Code of Conduct.