FPIs Turn Net Buyers of Indian Equities Amid Non-AI Diversification

Foreign Portfolio Investors (FPIs) have turned net buyers of Indian equities since July this year, and Vikas Gupta, CEO and Strategist at OmniScience Capital, believes non-AI diversification could drive more FPI inflows to India.

Gupta stated that a spike in inflation will prompt the US Federal Reserve to hike rates, but the most likely course for the Fed is to hold rates steady, given the balance between job growth and inflation.

India is among the worst-performing major markets this year. According to Gupta, the consistent July and August inflows indicate a sentiment turnaround for FPIs, which could be an initial exploration of allocating to non-AI assets to balance or hedge their portfolios.