FIIs: Why Indian Markets Could Outperform Over The Next Six Months

Foreign institutional investors have turned cautious on Indian equities, with India’s weight in the MSCI Emerging Markets Index falling to around 11%, according to Amit Goel. However, he believes the current pessimism may be excessive and expects sentiment to move towards neutral over the next six months. Amit Goel, Co-Founder and Chief Global Strategist at Pace 360, explains why India’s diversified equity market, economic growth, corporate landscape and institutional strengths could attract renewed foreign investor interest. He also highlights India’s gaps in technology, research and development, and innovation. Even a shift from extreme pessimism to neutral sentiment, he believes, could help Indian markets outperform several global peers