Trivesh D, COO, Tradejini
When it comes to India, I don’t think there is any foreign investor who does not want to invest in India. China's recent performance has cooled investor’s enthusiasm, leading them to shift their focus towards India as they are looking for riskier bets but with higher expected returns and political and demographic certainty.
There are many positive factors ahead for considering FII in India. The US Federal Bank’s shift from rate hikes to potential cuts in 2024 could make emerging markets like India more attractive for dollar-denominated investments. Also with falling US bond yields, which were once up, arbitrage opportunities for dollar carry trades have emerged, attracting FII inflows.
Not to forget the recent state elections, where we saw the market respond positively to the BJP's big wins. Similarly, India could fuel FII interest due to the stable political conditions following the general elections in 2024, which could boost investor confidence. Some experts believe FIIs who missed out on recent gains might plan to increase their investments.