Why Global Investors Are Shifting To India: RBI's FCNR Deposit & India Earnings Analysis

The macro outlook for India is improving as global markets become more expensive and concentration risks rise across major economies. Naveen Kulkarni, CIO, Axis Securities PMS, believes India is regaining its relative attractiveness thanks to an improving earnings profile and stable macro conditions. He views the RBI's FCNR deposit initiative as a positive development that could help large private banks raise funds at lower costs. While global markets have benefited from AI-driven growth, Kulkarni notes that valuations are no longer cheap. With foreign flows likely to improve and earnings momentum strengthening, he expects India to end the fiscal year on a strong note.