Ajay Bagga Breaks Down The Real Reasons Behind Continued FII Selling In Indian Markets

Foreign institutional investors continue to remain cautious on Indian markets as rising US bond yields, a stronger dollar and taxation concerns keep money away from emerging markets. In this conversation, Ajay Bagga explains why FIIs are still preferring safer US assets over markets like India despite strong domestic participation. He highlights how 4.5% risk-free returns in the US, coupled with a strengthening dollar, are reducing the attractiveness of emerging market investments. Ajay Bagga also discusses the impact of rupee depreciation, taxation issues, earnings expectations, AI opportunities, and the resilience shown by Indian markets through strong retail participation. He believes India’s ability to provide liquidity and smooth exits to global investors strengthens its long-term appeal despite near-term outflows.