FIIs stay away from India despite cheaper stocks
In short
Foreign investors have taken nearly $64 billion out of Indian stocks over the past two years, according to JM Financial. The report says cheaper valuations and better earnings are not enough yet, and a long fall in crude oil prices is seen as the trigger they may need.
This matters because foreign money can support Indian markets. The report does not say when FIIs will return or how far oil prices must fall.
What the reporting says
FIIs have pulled nearly $64 billion from Indian equities over the past two years, according to JM Financial. The report says that even with cheaper valuations and an improving earnings outlook, foreign investors remain on the sidelines. A sustained decline in crude oil prices is being viewed as a key trigger for their return, but the exact timing is not stated in the available reporting.
Why it matters
FIIs have withdrawn nearly $64 billion from Indian equities over the past two years, according to JM Financial. The report says cheaper valuations and an improving earnings outlook have not been enough to bring them back, and that a sustained decline in crude oil prices may be the key trigger. The immediate market impact is continued foreign outflows from Indian stocks, while the return timing remains unclear.