Just read a sharp piece by Akash Prakash (Amansa Capital) that really cuts to the heart of what’s driving the relentless FPI exodus from Indian equities. Some key points worth discussing:
The core problem he identifies:
• India trades at a 50% premium to EM averages, yet delivers only 10–15% earnings growth
• Large chunks of the market — IT, private banks, consumer staples, generics — are structurally stuck at this growth level
• China is now “investable” again (EV, AI, renewables), Korea is cheap + reforming, Japan has semiconductors. India is no longer the only game in EM town
• The AI narrative is a double-edged sword — it threatens India’s white-collar IT workforce, the very engine of our growth story
• FDI flows continue to stagnate. The China+1 story hasn’t delivered at the pace expected
His contrarian take: He believes we’re at peak negative sentiment on India right now, and that this pessimism may be overdone. The valuation multiples of September 2024 are unlikely to return anytime soon, but that doesn’t mean the story is permanently broken.
Which sectors do YOU think can actually re-accelerate earnings and change the narrative — defence, infra, renewables, something else?
Are you buying this dip, staying on the sidelines, or actively reducing India exposure?
Our Desi fund managers will never fully understand how FIIs (Foreign Institutional Investors or “White Folks at Wall Street”) think.
To uncover the real reasons behind FII actions, one would need direct insights from these White foreign fund managers at Wall Street themselves.
Despite a year of consistent daily FII selling, our Desi media has been unable to extract any meaningful explanations or secure interviews with FII fund managers from wallstreet. This suggests that FIIs operate like an exclusive club, where their reasoning and perspectives remain largely internal and undisclosed.
Unfortunately, each Desi fund manager is left to rely on their own guesswork, which is often far from accurately reflecting how FIIs are thinking.
Now Dhan has a real opportunity, get your VCs to pull the international strings and bring a White fund manager from Wall Street to speak on your channel. Let’s hear the real reasoning straight from the source.
FIIs became DIIs already this data is use less now blackrock entered in india via JIO finance, Japan-based Sumitomo Mitsui Banking Corporation (SMBC) via yes bank.. same story for other big FIIs as well.. so don’t rely on this data anymore.
Being in the market for 6 years now, I’ve seen this ‘FPIs are leaving’ story pop up every 2 years. One day India is expensive, the next day another country looks better—it’s just a cycle. But as they say, ‘Bhav Bhagwan Che’ (Price is God). This panic will settle soon. I’m personally keeping an eye on Defense and Renewables. After all, picture abhi baaki hai!
