During rate cut cycles FIIs raise EM allocations, but it could be different this time: A Balasubramanian

A Balasubramanian, MD & CEO of ABSL AMC, discusses the potential impact of a gradual rate cut by the US Fed on emerging markets like India. He highlights that while lower borrowing costs could attract foreign investments, India’s market attractiveness will also depend on valuations and growth expectations. Further, while people will start looking at other markets, they will also need to take into account how it will have an impact on the currency.