π§ FII return to Indian stocks: Bernstein's take
Bernstein analysts noted that Foreign Institutional Investors (FIIs) have little immediate incentive to invest in India after pulling nearly $40 billion in the last two years. The report suggests FIIs might return to trade rather than commit to long-term investments in Indian equities. Over the next 12 months, FII flows are predicted to be flat to modestly positive, citing easing headwinds. Analysts point out that large-caps are outdated, and small-mid-caps lack institutional appeal for significant capital deployment. A structural revival depends on India building globally competitive industries, like advanced semiconductor manufacturing. π§