3 Sectors that may attract FII’s during next 2-3 years according to Marcellus.

India’s forex reserves record biggest weekly gains in more than a year, now at $531.08 bln | Mint[quote=“ankit_george, post:14, topic:1220, full:true”]
Perhaps.

My big question is where exactly in the world are these smart money investors going to get returns that beat India’s in the near to medium term? To say that China has issues (tech, mortgage boycotts, inane zero Covid policies) would be an understatement. The US and EU region are not doing so well. Japan has its share of struggles too.

The first mistake that these FIIs make is bucketing all emerging markets (not including China) together. So whether it’s India, Brazil or the Philippines, a slight crisis in the world, or a taper tantrum makes them want to dump all their EM assets and “fly to safety.”

Their plan was, as I understand it, was to sell ₹ assets, and park their money in T-bills or something similar. Then when the ₹ depreciates a good 10-20%, they would come back in and make big purchases at a huge discount.

I firmly believe that this expected depreciation will not materialize this time around. India is the only major economy in the world that is a bright spot right now. The currency has not depreciated as much as it has in the past during periods of global volatility, and domestic investors have acted as a huge stabilizing force in the equity markets.

So let’s see what FIIs do next, I suppose.
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