Foreign investors are cautiously returning to Indian equities, but a durable FPI reallocation remains unconfirmed. HSBC Mutual Fund’s Venugopal Manghat highlights improving earnings, stable domestic demand and manufacturing growth, while stressing valuation discipline. Sustained foreign inflows will depend on earnings delivery, rupee stability, global liquidity, and India’s relative emerging-market valuations.
India valuations hit 6-year low, but stocks still expensive than EM peers
India’s equity valuations have reached their lowest levels in six years after a recent market decline. Factors contributing to this decline include foreign selling, a
October 26, 2026