Foreign investors are unlikely to return to Indian equities in large numbers even after the artificial intelligence trade peaks, with a sustained revival in foreign inflows depending on India's ability to build globally competitive industries in areas such as semiconductors, batteries and energy storage, Bernstein said in a report.
Bernstein said it expects foreign institutional investor (FII) flows to remain flat to modestly positive over the next 12 months, but cautioned that this would largely reflect easing of recent headwinds rather than a meaningful improvement in the factors that drive long-term foreign investment decisions.
